KUALA LUMPUR — The government is proposing that individual income tax relief be given on loan interest payment on the first home purchased individually or jointly.
The Finance Ministry in an appendix to Budget 2025 which was tabled in parliament today said that for a house priced up to RM500,000, the total annual tax relief would be RM7,000.
For a house priced RM500,000 to RM750,000, the tax relief will amount to RM5,000.
“The individual income tax relief on this interest payment is subject to the condition that the residential house is not used to generate any income and the sale and purchase agreement must be completed from Jan 1, 2025 to Dec 31, 2027.
“The amount of individual income tax relief on interest payments allowed is for three consecutive assessment years, starting from the first year housing loan interest is paid,” it said.
The ministry also said two or more individuals are eligible to claim tax relief on housing loan interest payments for the same residential house, on the basis of interest payment sharing. – October 18, 2024
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