Income Tax Relief on Interest of Housing Loan
The tax relief on interest of housing loan is RESTRICTED to a maximum of RM10,000 and is deductible for each basis year for a period of three consecutive years of assessment as from the date in which the interest is first expended (RM10,000 x 3 years = RM30,000)
Conditions for eligibility:
- An individual who is a citizen and resident;
- The purchase of the residential property is limited to only one unit;
- The Sale and Purchase Agreement has been executed from 10th March 2009 to 31st December 2010; and
- The particular residential property must not be rented out.
If a property is jointly purchased by more than one person, all
of them are entitled for the relief restricted to maximum of
RM10,000 per year.
Example:-
If you bought a residential house for your own use in May 2009, you are allowed to claim loan interest relief of up to RM10,000 per year for 3 years of assessment, from YA 2009 up to YA 2011, provided you have incurred the interest expense in the respective YA (RM10,000 x 3 years = RM30,000)
If the house is purchased in 2010, you are allowed to claim from YA 2010 up to YA 2012.
Click here for Press Release from Malaysia Inland Revenue Board.
Income Tax Act, 1967
Section 46B. Deduction for individual on interest expended
