Question:
Read the given statements and choose the correct option.
Statement 1: Under the Income-tax Act, 1961, a deduction equal to 30% of the annual value is allowed while computing income from house property.
Statement 2: Where the property has been acquired or constructed with borrowed capital, the maximum deduction for interest payable on such capital is capped at ₹2,00,000, subject to conditions.
Read the given statements and choose the correct option.
Statement 1: Under the Income-tax Act, 1961, a deduction equal to 30% of the annual value is allowed while computing income from house property.
Statement 2: Where the property has been acquired or constructed with borrowed capital, the maximum deduction for interest payable on such capital is capped at ₹2,00,000, subject to conditions.
Statement 1: Under the Income-tax Act, 1961, a deduction equal to 30% of the annual value is allowed while computing income from house property.
Statement 2: Where the property has been acquired or constructed with borrowed capital, the maximum deduction for interest payable on such capital is capped at ₹2,00,000, subject to conditions.
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House property deductions → 30% standard deduction + interest (max ₹2 lakh for self-occupied).
Updated On: Nov 30, 2025
- Both Statements 1 and 2 are false
- Only Statement 1 is true
- Only Statement 2 is true
- Both the Statements are true
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Verified By Collegedunia
The Correct Option is D
Solution and Explanation
Step 1: Verify Statement 1.
Section 24(a) IT Act allows a flat 30% deduction from Annual Value. Hence Statement 1 is correct.
Step 2: Verify Statement 2.
Section 24(b) limits interest deduction to ₹2,00,000 for self-occupied property where borrowed capital is used. Hence Statement 2 is correct.
Step 3: Conclusion.
Both statements correctly reflect Section 24 of the Income-tax Act.
Section 24(a) IT Act allows a flat 30% deduction from Annual Value. Hence Statement 1 is correct.
Step 2: Verify Statement 2.
Section 24(b) limits interest deduction to ₹2,00,000 for self-occupied property where borrowed capital is used. Hence Statement 2 is correct.
Step 3: Conclusion.
Both statements correctly reflect Section 24 of the Income-tax Act.
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