This blog is summarize for those taxpayers who declares their income under the head Income From House Property. Sometimes they forget to avail exemptions that can save their taxes. Here given some section wise info which is available exemptions to save tax to all assessee. So, take consider this exemption before filing your income tax return with the income head income from house property.
List of Allowances / Exemptions Under the head Income from house property for A. Y 2018-19 [F Y 2017-18]
SL. No. | Section | Particulars | Limit of exemption | Exemption available to |
1. | First proviso to section 23(1) | Municipal tax levied by local authority and borne by owner in respect of house property | Amount actually paid during the relevant previous year | All assessee |
1A. | 23(5) | No Notional income for house property held as stock-in-trade | Any building and land appurtenant thereto held as stock-in-trade which is not let during the whole or any part of the previous year. Annual value of such property for the period upto one year from the end of the financial year in which the certificate of completion of construction of the property is obtained from the competent authority, shall be taken to be Nil. | All assessee |
2. | 24(a) | Standard Deduction | 30% of the Annual Value (Gross Annual Value- Municipal Taxes) | All assessee |
3. | 24(b) | Interest incurred on borrowed capital | Interest on borrowed capital is allowed as deduction from income from house property as under: a) Up to Rs. 2,00,000 (if amount is borrowed for construction/acquisition of self-occupied house property on or after 01-04-1999), subject to certain other conditions b) Up to Rs. 30,000 (if amount is borrowed for reconstruction, repair or renewals of self-occupied house property) c) Actual amount of interest paid or payable during the year (in case of let-out property) d) Pre-construction period interest is allowed in 5 annual equal installments (Subject to certain conditions) | All assessee |
4. | Section 25A | Standard Deduction from arrears of rent or unrealized rent received subsequently | 30% of arrears of rent or unrealized rent. | All assessee |
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