Deductions from income from house property
(1)
The income under the head "Income from house property" shall be computed after allowing the following deductions:–– (a) 30% of the annual value;
(b)
where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital.
(2)
In case of property or properties referred to in section 21(6), the aggregate amount of deduction under sub-section (1)(b) shall not exceed— (a) two lakh rupees, subject to the following conditions:–– (i) the property has been acquired or constructed with borrowed capital and such acquisition or construction is completed within five years from the end of tax year in which capital was borrowed;
(ii)
if capital is borrowed during any period prior to the tax year in which the property has been acquired or constructed, any interest payable for the said prior period shall be allowed as a deduction in five equal instalments for the said tax year and for each of the four immediately succeeding tax years;
(iii)
the assessee furnishes a certificate from the person to whom interest is payable on such capital; and (b) thirty thousand rupees in any other case.