Tax benefits on Income from house property

Will the new Direct Taxes Code take away the tax benefits available for interest and principle paid on home loans? Can you please elaborate more on future of tax benefits?

• As per the new Direct Taxes Code, the provi sions relating to income from house property are contained under sections 23-27. Section 25(1) states that the gross rent in respect of a property shall be the higher of the amount of contractual and presumptive rent for the financial year. Further, section 25(4) states that the gross rent shall, regardless of anything to the contrary contained in sub-section (1), be taken as nil if the property consists of a house or a part of a house which is not let out. Further, section 25(6) states that the provisions of sub-section shall, in a case where a person owns more than one house, shall apply only in respect of one house which the person may specify at his option. Further, section 26(2) states that the aggregate of deductions referred to in sub-section (1) shall be nil in respect of the property referred to in section 25(4). Thus, no deductions can be claimed in respect of self-occupied property which is presently available under the IT Act, 1961. If the house is rented or if the income is included in the computation of income, being the additional houses other than the self-occupied house as specified by the assesseee at his option, the interest on borrowed capital in respect of the said houses will be allowed as deduction in entirety without any limit.