Section 24 of the Income Tax Act: Types of Deductions From Housing Loans

What Is Section 24 of the Income Tax Act?

What Are the Types of Deduction Under Section 24 of the Income Tax Act?

What Are the Conditions to Claim Deduction on Home Loan Interest?

What Are the Exceptional Situations Under Section 24 of ITA?

How to Evaluate Income Received from Housing Property?

The results are represented through a table mentioned below:

Particulars of Calculation

Rental Property

Self-Occupied Property

Gross Annual Value (Rental Income = ₹ 10,000*12)

₹ 3,60,000

NIL

Less: Municipal Taxes

₹ 10,000

NIL

NAV or Net Annual Value

₹ 3,50,000

NIL

Less: Standard Deduction (30% of Net Annual Value)

₹ 1,05,000

NA

Less: Home Loan Interest

₹ 2,00,000

₹ 2,00,000

Less: Pre-Construction Interest (1/5th of ₹ 1,50,000)

₹ 30,000

₹ 30,000

Total Income Earned from Housing Property

₹ 15,000

₹ 2,30,000

Total Loss Limited to

-

₹ 2,00,000

 

Individuals can adjust the total loss in income earned through a housing property with other income sources up to ₹ 2,00,000. They can carry forward the remaining loss for 8 years. However, they can adjust this remaining amount only against income earned from housing property.

Thus, this is all about Section 24 of the Income Tax Act. Additionally, consider the pointers while evaluating the total income earned from a housing property to avoid any inconvenience.

Frequently Asked Questions