1. Standard deduction u/s 24(a) 30% of the net annual value is allowed as standard deduction in respect of all expenditures (other than interest on borrowed capital) irrespective of the actual expenditure incurred. Note: Where NAV is negative or zero, standard deduction u/s 24(a) is not available. 2. Interest on loan or borrowed capital u/s 24(b) Interest payable on amount borrowed for the purpose of purchase, construction, renovation, repairing, extension, renewal or reconstruction of house property can be claimed as deduction on accrual basis. s23 ILLUSTRATION Following information are provided by an assessee for his house properties for computing interest on loan allowed w's 24(b): Particulars HPI HP2 HP3 HP4 HPS Interest on loan taken for repair of H.P. 20,000 30,000 10,000 15,000 25,000 Interest on loan taken for purchasing H.P. (50% paid) 20,000 25,000 30.000 17.000 18.000 Interest on new loan taken for repaying old loan which was taken for purchasing H.P. 10,000 12,000 13.000 14.000 16,000 Interest on loan taken for payment of interest on earlier loan 10,000 10,000 10,000 10,000 10,000 Interest on loan for payment of Municipal tax 2.000 2,000 2,000 2.000 2.000 Interest on loan by mortgaging HP3 for business purpose 5.000 Interest on loan for reconstruction of HP1 paid outside India without deducting tax at source 20,000 Interest on loan for reconstruction of HP2 payable outside India on which TDS has not been deducted and no payment yet been made 20,000 Interest on loan on mortgage of HPI for renovation of HP2 10,000