Deductions from gross rent.
27. (1) The deductions for the purposes of computation of income from house property shall be the following, namely:—
(a) the amount of taxes levied by a local authority in respect of such property, to the extent the amount is actually paid by him during the financial year;
(b) a sum equal to twenty per cent. of the gross rent determined under section 26, towards repair and maintenance of such property;
(c) the amount of any interest,—
(i) on loan taken for the purposes of acquisition, construction, repair or renovation of the property; or
(ii) on loan taken for the purpose of repayment of the loan referred to in sub-clause (i);
(2) The interest referred to in clause (c) of sub-section (1) which pertains to the period prior to the financial year in which the house property has been acquired or constructed shall be allowed as deduction in five equal instalments beginning from such financial year.
(3) The interest deductible under sub-section (2) shall be reduced by any part thereof which has been allowed as deduction under any other provision of this Code.
