To encourage the purchase of the first residential property among the public and to increase disposable income, Section 46C was introduced to allow a tax deduction for resident individuals on the payment of interest for their first residential property loan. Total deduction allowed is based on the following price range of the house:
House Price | Total annual tax deduction |
Up to RM 500,000 | RM7,000 |
Exceeding RM 500,000 up to RM750,000 | RM5,000 |
Amount of deduction depends on
property value
Year of Sales & Purchase Agreement signed (applicable to 2025-2027 only)
Start year of paying interest
Amount of interest paid per year
Total interest for all parties (in joint loan scenario)
How to capture this in Talenox?
Head to Profiles > Employee Listing > Setup Accumulated Deductions > TP1 Deduction:
Fill up
(a) Property Value
(b) Year of sales & purchase agreement signed
(c) Start year of paying loan interest
Fill up the interest paid in first year, 2nd year and final year of eligibility to ensure the tax deduction is accurate in TP1
