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Under section 192(2A) where the assessee, being a Government servant or an employee in a company, co-operative society, local authority, university, institution, association or body is entitled to the relief under Section 89(1) he may furnish to the person responsible for making the payment, such particulars in Form No. 10E duly verified by him, and thereupon the person responsible for making the payment shall compute the relief on the basis of such particulars and take the same into account in making the deduction.
No such relief shall be granted in respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his service.
The employer in respect of loss claimed under the head "Income from house property" under Section 24(b) of the Act allows deduction of interest on borrowed capital from income from houses property as under:-
| S.No | Purpose of borrowing capital | Date of borrowing capital | Maximum Deduction allowable |
|---|---|---|---|
| 1 | Repair or renewal or reconstruction of the house | Any time | Rs. 30,000/- |
| 2 | Acquisition or construction of the house | Before 01.04.1999 | Rs. 30,000/- |
| 3 | Acquisition or construction of the house | On or after 01.04.1999 | Rs. 1,50,000/- This limit enhanced to Rs. 2.00 Lac w.e.f FY 14-15 |
(i) The acquisition or constructing of the house should be completed within 3 years from the end of the FY in which the capital was borrowed. Hence it is necessary for the DDO to have the completion certificate of the house property against which deduction is claimed either from the builder or through self-declaration from the employee.
(ii) Further any prior period interest for the FYs upto the FY in which the property was acquired and constructed shall be deducted in equal installments for the FY in question and subsequent four FYs.
(iii) The employee has to furnish before the DDO a certificate from the person to whom any interest is payable on the borrowed capital specifying the amount of interest payable. In case a new loan is taken to repay the earlier loan, then the certificate should also show the details of Principal and Interest of the loan so repaid.