PLEASE LET ME KNOW IF SOMEBODY PURCHASED HOUSE PROPERTY OUTSIDE INDIA BY TAKING LOAN OUTSIDE INDIA, WILL INTEREST DEDUCTION ALLOWED UNDER INCOME TAX ACT OR NOT?
Income Tax Act does not specify that properties must be situated only in India. From the reading of the IT Act, the rule of ‘more than one property’ will apply to global properties, not just to the properties situate in India.
Amounts not deductible from income from house property.
25. Notwithstanding anything contained in section 24, any interest chargeable under this Act which is payable outside India [not being interest on a loan issued for public subscripttion before the 1st day of April, 1938], on which tax has not been paid or deducted under Chapter XVII-B and in respect of which there is no person in India who may be treated as an agent under section 163 shall not be deducted in computing the income chargeable under the head "Income from house property".
I am understanding as per section if we are paying interest on home loan outside India, we need to deduct TDS? is it so?
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