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Jul 24, 2025
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Income Tax Bill 2025: Income from house property taxation related two key amendments suggested by select committee, know the impact
The Lok Sabha Select Committee has recommended two key amendments regarding tax deductions on income from house property. One of the key amendments proposed by the Committee is to allow a standard deduction of 30% from the gross annual value (GAV) of a house property after deducting municipal taxes. The second significant amendment they recommended is to allow a deduction of home loan interest when calculating income from rented (let-out) house properties.
What did the Select Committee recommend?
According to the press release dated July 21, 2025, the Select Committee of the Lok Sabha recommended:
Deductions from income from house property (Clause 22, 22(1), and 22(2)):
The Committee, after deliberations on Clause 22, identified the need to clarify the computation of deductions to enhance fairness and transparency for property owners. The Committee, therefore, recommended two key amendments:
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