Question

Amount of deduction under section 24 of The Income Tax Act from annual value is -

• A. 12 of Annual Value
• B. 1/3 of Annual Value
• C. 3/10 of Annual Value
• D. 17/10 of Annual Value

Hint:

For "Income from House Property," remember the standard deduction is always a flat 30% (or 3/10) of the Net Annual Value (NAV). This is meant to cover expenses like repairs and maintenance, regardless of the actual amount spent.

Answer 1

The Correct Option is C

Section 24 of the Income Tax Act, 1961, deals with deductions from the "Net Annual Value" of a house property to arrive at the taxable income from that property. There are two main deductions allowed:
A standard deduction under Section 24(a) at a flat rate of 30% of the Net Annual Value.
A deduction for interest paid on borrowed capital for the property under Section 24(b).
30% is equivalent to the fraction 3/10. Therefore, the correct option is (c).