What are the deductions admissible while computing income from House Property?
Ans : The following deductions are to be made from the annual value while computing income from house property :- (a) 30% of the annual value, in respect of repairs and collection charges; (b) interest payable on loan taken for acquisition, construction, repair, renewal or re-construction of the property; In respect of a self-occupied property whose annual value is taken as Nil, no deduction is admissible except deduction for interest payable on loan as mentioned at (b) above, subject to a ceiling of Rs. 30,000/- ( if the property is acquired or constructed with capital borrowed on or after 1.4.1999 and if the acquisition or construction is completed before 1.4.2003, the interest allowable as deduction will be Rs. 1,50,000/- instead of Rs. 30,000/-).
