Circular No. 204/1976 (HP) — Deduction u/s 24 — interest on borrowed capital
Date: 1976-01-01 Status: ACTIVE Category: Income from House Property Binding on Department: Yes (Section 119 / Section 400 IT Act 2025)
Summary
Scope of deduction for interest on borrowed capital under section 24(b). Interest includes all charges associated with the loan.
Key Directions
- Interest on borrowed capital deductible from income from house property.
- Includes processing charges, service fees, and prepayment penalties.
- Pre-construction interest deductible in 5 equal annual instalments.
Applicability Under IT Act 2025
Saving Clause: Section 536 of IT Act 2025 saves circulars issued under the 1961 Act “so far as not inconsistent” with the new Act.
| Old Section (1961 Act) | New Section (2025 Act) | Consistent? |
|---|---|---|
| 24(b) | 24 | Yes |
Cross-References
Act Sections
- Section 24(b)
- Section 24
Related Circulars
- None identified
Key Case Law (Circular Supremacy)
- To be populated — cases where this circular was cited/applied
Full Text
Full text to be added — see raw/circulars/ for PDF when available
Source
- Official: incometaxindia.gov.in/circulars