Rent and other income from any flat, building or land appurtenant thereto are generally taxed under the head „Income from house property‟.

As per Sec. 22 “House Property” does not include vacant land. Income derived from a vacant land is charged either under the head „Income from Business or Profession” or under the head “Income from other sources”, depending upon its nature. However, if the owner occupies the house property for the purposes of his own business or profession, no tax is to be paid under this head in respect of such property.

 A) SELF OCCUPIED PROPERTY (House Property used for own residence)

Interest paid on housing loan for Self occupied property [If you have a housing loan against a house you live in then you can claim a tax deduction of upto Rs. 2,00,000.]

For which you need to provide following documents.

  1. Housing loan interest certificate with bifurcation of interest and principle repayment during the year or Housing Loan Statement.
  2. Address of House Property.
  3. Your ownership share of Property.
  4. Bank Statement
  5. Tax Receipt

 B) LET OUT PROPERTY (Rented House Property)
Interest paid on housing loan for Let out property [If you have a housing loan against a house you had let out then you can claim interest as a tax deduction].

For which you need to provide following documents.

  1. Housing loan interest certificate with bifurcation of interest

and principle repayment during the year or Housing Loan

Statement.

  1. Address of House Property.
  • Your ownership share of Property.
  • Rent receipt of property letout
  • Bank Statements
  • Tax Receipt

It is also important to note that this tax deduction of Interest on Home Loan under Section 24 is deductible on payable basis, i.e. on accrual basis. Hence, deduction under Section 24 should be claimed on yearly basis even if no payment has been made during the year.

 

Sr.
No
Purpose of borrowing capital Date of borrowing
capital
Maximum Deduction
allowable in
case of SOP
Maximum Deduction
allowable in
case of Let out
1 Repair or renewal or reconstruction of the
house
Any time Rs. 30,000/- No Limit
2 Acquisition or constructionof the house Before 01.04.1999 Rs. 30,000/- No Limit
3 Acquisition or constructionof the house On or after 01.04.1999 and acquisition or construction is completed within 3 years. Rs. 2,00,000/- wef A.Y. 2015-16. No Limit