20.  Deductions.-

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

(a)    in respect of repairs, an allowance equal to one-fifth of the annual value;

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

(c)    the amount of any local rate, tax, charge or cess (being owners burden) in respect of property or income from property paid to any local authority or Government, not being any tax payable under this Ordinance;

(d)    where the property is subject to a ground rent, the amount paid on account of such ground rent;

(e)    where the property has been acquired, constructed, renovated or reconstructed with borrowed capital, the amount of any interest paid on such capital;

(ee)  where the property has been acquired, constructed, renovated, extended or reconstructed with capital contributed by the House Building Finance Corporation constituted under the House Building Finance Corporation Act, 1952 (XVIII of 1952), or a scheduled bank, under a scheme of investment in property on the basis of sharing the rental income made by the said Corporation or the bank, the amount representing share in rental income (excluding return of capital, if any) from the said property paid to the said Corporation or the bank;

(f)    where the property is subject to mortgage or other capital charge, the amount of interest paid on such mortgage or charge;

(g)    any expenditure (not exceeding six percent of the annual value) incurred by the assessee for the purpose of collecting the rent of the property;

(gg)  any expenditure incurred by the assessee on legal service acquired to defend title of the property or any suit connected therewith in a court of law;

(h)    where the property is vacant during a part of the year, an allowance equal to that part of the annual value, which is proportionate to the period during which the property was vacant or, where the property is let out in parts, that part of the annual value which is proportionate to the period during which such part was vacant; and

(i)    subject to such rules as may be made in this behalf, an allowance on account of unrealised rent.

(2)   The allowances and deductions under sub-section (1) shall not be admissible for the purpose of computing the income of the assessee under any other head.

(3)   The provisions of section 24 shall, so far as may be, apply to the allowances and deductions under this section as they apply to the allowances and deductions in respect of income chargeable under the head "Income from business or profession".

(4)  Where in any income year the assessee had paid any amount referred to in clauses (b) to (g) of sub-section (l) which relates to any earlier income year and the said amount has not been allowed as deduction in that year, the said amount shall be allowed as deduction in the income year in which it is paid or, at the written option of the assessee, in the income year to which it relates.