alleryStart learning →Which loan cost is deductible from house property income?
AStamp duty paid on purchase
BRepayment of loan principal
CInterest on borrowed capital
DBrokerage on the purchase
Answer & Solution
Correct answer: C. Interest on borrowed capital
Section 24(b) allows the interest payable on capital borrowed for the property, not principal repayment or purchase costs.
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Related questions
Two co-owners share a let house equally; annual value Rs 4,00,000, no loan. Each one's incLet-out house: annual value Rs 2,00,000, interest Rs 80,000. Income?House let at Rs 1,50,000 a year against fair rent Rs 1,20,000, no taxes. Income?The 30 per cent deduction under section 24(a) is taken on:Section 24(b) interest applies to a house acquired, built, repaired, renewed or:Section 22 taxes a building together with its appurtenant:Deemed owner of house property is defined in section:Taxation of co-owned buildings with definite shares is under section: