25. Deductions from income from house property.-

25. Deductions from income from house property.-

(1)   In computing the income under the head "Income from house property" the following allowances and deductions shall be made, namely:-

(a)  any sum payable to Government as land development tax or rent on account of the land comprised in the  property;

(b  the amount of any premium paid to insure the property against risk of damage or destruction;

¹[(c)]     any sum spent to collect the rent from the property, not exceeding two and a half per cent of the annual value of the property;]

(d)   where the property is subject to mortgage or other capital charge for the purpose of extension or reconstruction or improvement, the amount of any interest payable on such mortgage or charge;

(e)   where the property is subject to an annual charge not being a capital charge, the amount of such charge;

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¹ Omitted by F.A. 1992

Explanation.- The expression "annual charge", as used in this clause, includes any tax leviable, in respect of property or income from property, by local authority or Government but does not include the tax leviable under this Ordinance;

(f)   where the property is subject to a ground rent, the amount of such rent;

(g) where the property has been acquired, constructed,repaired, renewed or reconstructed with borrowed capital,¹[ from bank or financial institution], the amount of any interest payable on such capital ²[

³[Provided that where the property or a portion thereof is self occupied and acquired, constructed, renewed or reconstructed with borrowed capital, the amount of any interest, payable on such borrowed capital not exceeding taka twenty lakh, shall be deducted from total income;]

⁴[(gg) Where the property has been constructed with borrowed capital ⁵[from bank or financial institution]  and no income under section 24 was earned from that property during the period of such construction, the interest payable during that period on such capital, in three equal proportionate installments for subsequent first three years for which income is assessable from that property;

⁶[(h)     in respect of expenditure for repairs, collection of rent, water and sewerage, electricity and salary of darwan, security guard, pump-man, lift-man and caretaker and all other expenditure related to maintenance and provision of basic services;

(i)   an amount equal to one fourth of the annual value of the property where the property is used for residential perpose

(ii)    an amount equal to thirty per cent of the annual value of the property where the property is used for commercial purpose;]

⁷[(i) where the property is in the occupation of a tenant who has undertaken to bear the cost of repairs,a sum equal to the difference between the annual value of the property and the rent payable by the tenant subject to the maximum of ⁵[one-sixth] of such value];

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¹ Ins.by F.A. 2014
² Subs. "semi-colon" for "colon" and omitted proviso by F.A. 2012
³ Subs. "colon" for "semi-colon" and ins. new proviso by F.O. 2007
⁴ Ins. by F.A. 2002
⁵ Ins by F.A. 2014
⁶ Subs. by F.A. 2000 and again subs. by F.A. 2004
⁷ Omitted by F.A. 1992 

(j)   where, the whole of the property is let out and it was vacant during a part of the year, a sum equal to such portion of the annual value of the property as is proportionate to the period of the vacancy; and

(k)  where, the property is let out in parts, a sum equal to such portion of the annual value appropriate to the vacant part as is proportionate to the period of the vacancy of such part.

(2)  Notwithstanding anything contained in sub-section (1), no deduction shall be allowed under this section in respect of any interest or annual charge payable outside Bangladesh on which tax has not been paid or deducted in accordance with the provisions of Chapter VII.

¹[(3)] )  The total amount deductible under sub-section (1) in respect of the property in the occupation of the owner for purpose of his own residence shall no exceed the annual value of such property as determined under section 2(3)]

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¹Omitted by F.A. 1992

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