Deductions from income from house property

Regarding the following deductions, income charged under the heading "Income from House Property" will be calculated, namely:-

   (a) thirty percent of the years worth in money;

   (b) if the property was purchased, built, renovated, refurbished, or rebuilt using borrowed money, the amount of any interest that may be due on that money.

With the proviso that the amount of deduction, or, where applicable, the total amount of deductions, for property covered by sub-section (2) of Section 23, cannot be greater than Rs. 30,000.

You can have a glimpse of 80g.

Furthermore, the amount of deduction or as applicable, the sum of the amounts of deduction under this clause, shall not exceed two lakh rupees in cases where the property mentioned in the first proviso is acquired or constructed using capital borrowed on or after April 1, 1999, and if the establishment or construction is finished five years after the end of the fiscal year when the money was borrowed. If the property was bought or built with borrowed money, the interest, if any, on that capital for the time leading up to the previous year in which the property was bought or built, less any portion thereof allowed as a deduction under any other requirement of this Act, shall be exempted under this clause in equal instalments for the said prior year and for each of the four immediately prospering previous years.

You can tax deductions under 80 g.

Furthermore, no deduction under the second proviso may be made unless the assessee submits a certificate from the party to whom any interest is due on the capital borrowed that details the amount of interest due by the taxpayer for the purpose of the property's acquisition or construction, or the conversion of the entirety of the capital borrowed that has not yet been repaid into a new loan.

The term "new loan," as used in this proviso, refers to any loan accepted in full or in part by the assessee after the capital was borrowed with the intention of repaying that capital.

Furthermore, the total of the deductions allowed under the first and second provisos cannot exceed two lakh rupees. 

Don't wait more for tax exemption under 80g.