Which deduction is provided by section 22(1)(b) of the Income-tax Act, 2025?
Question and options
Which deduction is provided by section 22(1)(b) of the Income-tax Act, 2025?
Thirty per cent of the annual value of the property
Interest payable on capital borrowed for the property
Pre-construction interest spread over five instalments
Municipal taxes actually paid by the owner
Answer and explanation
Section 22(1)(b) of the Income-tax Act, 2025 allows the interest payable on capital borrowed to acquire, construct, repair, renew or reconstruct the property. Pre-construction interest in five instalments is section 22(1)(c), the 30% deduction is section 22(1)(a), and municipal taxes reduce annual value under section 21(3).
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