Income Tax Section 24

Section 24 of the income tax act deals with interest that an individual pays on home or property loans.

Income tax section 24. Deductions from income from house property. It means the amount of income tax relief landlords receive for residential property finance costs will be restricted to the basic rate of tax. Section 24 b of the income tax act 1961 deals with deduction of interest from the gav in order to arrive at the net asset value nav.

Section 24 of the income tax act tells about such deductions. This section is also known as deductions from income from house property. Section 24 of the income tax act 1961 considers the interest that one pays for property or home loans.

For section 24 of the income tax act the following section shall be substituted with effect from the 1st day of april 2002 namely 24. These deductions are reduced from net annual value of house which is arrived while computing the income from house property for the particular previous year. Interest deduction treatment is different depending upon whether the house property is self occupied or it is let out.

As we know buying a home is either a need investment asset or all three. In other words section 24 allows an individual to claim exemptions on the home loan interest that one pays. House prices have indeed shot through the roof and many end up taking home loans.

The amount of the credit allowable under subsection a shall be reduced but not below zero by 50 for each 1 000 or fraction thereof by which the taxpayer s modified adjusted gross income exceeds the threshold amount. A great chunk of one s income goes towards home loan emi. This section deals with exemptions on the interest paid on home loans.

So the government has given plenty of tax benefits for house property under section 24 of the income tax act. Income tax section section 24 section 24a and section 24b deals with house property deductions which an assessee can claim under the head income from house property. Income from house property.