Questions regarding deduction

     under section 24 of the I T  act 

 1)  Municipal  Taxes actually  paid  by   the owner    

  2)   A sum equal  to 30%  of the Annual  value 

  3)   Interest  on borrowed capital 

Following are the deduction which are allowed under Income from House Property :

(1). From the Gross Annual Value ( GAV ), All types of local taxes paid to the local authority like Municipal Tax, Water Tax etc is allowed as deduction on "Payment Basis".

(2). From the Net Annual Value ( NAV ), following are the deduction which are allowed :

(a). STANDARD DEDUCTION U/s 24(a) of the Income Tax Act 1961 - 30% of the NAV.

(b). Interest on Borrowed Capital U/s 24(b) of the Income Tax Act 1961 - Upto Rs. 2 lakhs incase of Self Occupied House Property and No limit incase of Let Out Property.

After calculating the GROSS TOTAL INCOME, you can claim Deduction under Chapter VIA - Section 80C of Rs. 1,50,000 for the repayment of Principal Amount.