What are the deduction allowed u/s 24?

Question: What are the deduction allowed u/s 24?

Under Section 24 of the Income Tax Act in India, deductions are allowed on income from house property. The deductions available under Section 24 include:

1. Standard Deduction: A standard deduction of 30% of the annual value of the property is allowed as a deduction. This deduction is available to all taxpayers irrespective of the actual expenses incurred on the property.

2. Interest on Home Loan: Deduction on interest paid on home loan is allowed. For a self-occupied property, the maximum deduction allowed is up to Rs. 2 lakh per financial year. For a let-out or deemed let-out property, there is no maximum limit on the deduction for interest paid on the home loan.

It's important to note that if the property is not self-occupied, the actual interest paid or the amount of interest received, whichever is higher, is considered for deduction. However, if the property is self-occupied, the maximum deduction limit of Rs. 2 lakh applies.

These deductions can be claimed while calculating the taxable income from house property. It's advisable to consult a tax professional or refer to the relevant tax laws and regulations for detailed and updated information on deductions under Section 24 of the Income Tax Act.

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