Malaysia Income Revenue Board (IRB) has released a statement after received many inquiries from taxpayers about the tax relief on interest of housing loan.

The statement informed that 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.

Do take note on the conditions for eligibility for this tax relief:
i. An individual who is a citizen and resident; (for the definition of resident do refer to Definition of  Individual Residence in Malaysia)
ii. The purchase of the residential property is limited to only one unit;
iii. The Sale and Purchase Agreement (S&P) has been executed from 10th March 2009 to 31st December 2010; and
iv. 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.

IRB reminded that false declarations and claims are not allowed by the law and could be penalized under the Income Tax Act 1967.

If you had signed the S&P on or after 10 th March 2010, do try to find out whether you are qualify for this tax relief of housing loan to a maximum of RM 10, 000.

If you wish to get more information on this, do visit the IRB's official website or call the Customer Service Centre at 1-300-88-3010.

Do remember that the last day for the submission of income tax is 30 April 2010.

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Related Information:
Malaysia Individual Income Tax Rate Table for Assessment Year 2010
Malaysia Individual Income Tax Rate for Assessment Year 2009
Malaysia Individual Income Tax Relief Items 
Malaysia 2010 Budget Highlights