Which pair of deductions does section 22 of the Income-tax Act, 2025 allow in computing income from a let-out house?
Question and options
Which pair of deductions does section 22 of the Income-tax Act, 2025 allow in computing income from a let-out house?
30% of annual value and interest on borrowed capital
Actual repairs and interest on borrowed capital
30% of annual value and repayment of loan principal
Insurance premium and interest on borrowed capital
Answer and explanation
Section 22(1) of the Income-tax Act, 2025 allows a flat 30% of annual value, in place of actual repairs, insurance and other expenses, together with interest on borrowed capital. Repayment of loan principal is not a house-property deduction; it may qualify only under section 123 in the optional regime.
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