Amendment of section 24
10. In section 24 of the Income-tax Act, in clause (b), in the second proviso, for the words “one lakh fifty thousand rupees”, the words “two lakh rupees” shall be substituted with effect from the 1st day of April, 2015.
Notes on Clauses:
Clause 10 of the Bill seeks to amend section 24 of the Income-tax Act relating to deductions from income from house property.
The existing provisions contained in section 24 provide that income chargeable under the head “income from house property” shall be computed after making a deduction of a sum equal to thirty per cent. of the annual value and where the property is acquired with borrowed capital, the amount of any interest payable on such capital. The second proviso to clause (b) of the said section, inter alia, provides that in case of a self-occupied property where the acquisition or construction of the property is completed within three years from the end of financial year in which the capital is borrowed, the amount of deduction under that clause shall not exceed one lakh fifty thousand rupees.
It is proposed to amend the second proviso to clause (b) of section 24, so as to increase the limit of deduction on account of interest in respect of property referred to in sub-section (2) of section 23 to two lakh rupees.
This amendment will take effect from 1st April, 2015 and, will accordingly apply, in relation to the assessment year 2015-16 and subsequent years.
