Section 22 — Deductions from income from house property

(1) The income under the head “Income from house property” shall be
computed after making the following deductions:—
( a) 30% of the annual value as determined under section 21;
( b) where the property has been acquired, constructed, repaired, renewed or
reconstructed with borrowed capital, the amount of any interest payable
on such capital;
( c) where the capital referred to in clause (b) is borrowed during any period
prior to the tax year in which the property has been acquired or con -
structed, the amount of any interest payable for the said prior period
5. Substituted for “nil for” by the Finance Act, 2026, w.e.f. 1-4-2026.
in five equal instalments for the said tax year and for each of the four
immediately succeeding tax years.
(2) In case of property or properties referred to in section 21(6), the aggregate amount
of deduction under 6[sub-section (1)(b) and (c)] shall not exceed—
( a) ` 200000, subject to the following conditions:—
( i) the property has been acquired or constructed with borrowed capital
and such acquisition or construction is completed within five years
from the end of tax year in which capital was borrowed;
( ii) the assessee furnishes a certificate from the person to whom interest
is payable on such capital; and
( b) ` 30000 in any other case.
(3) The deduction under section 22(1)(c) shall be computed after reducing the interest
referred to in the said section by any amount already allowed as a deduction under
any other provisions of this Act.
(4) The certificate referred to in sub-section (2) shall specify—
( a) the amount of interest payable on capital borrowed; and
( b) the interest payable on any new loan, where subsequent to the capital
borrowed, the assessee has taken any such loan for repayment of whole
or any part of such capital.
(5) The aggregate of the amounts of deduction under sub-section (2) in respect
of properties of the nature referred to in section 21(6) shall not exceed ` 200000.
(6) Any interest chargeable under this Act which is payable outside India shall not
be allowed as a deduction under this section, if—
( a) tax has not been paid or deducted on such interest under Chapter XIX-B;
and
( b) in respect of such interest, there is no agent in India as per section 306.