Section 27A: Interest relief

27A. Interest relief (1) Subject to this section, every person shall, in an income year, be allowed a relief by way of deduction from his net income in respect of the amount of interest paid in that income year to— (a) a bank or a non-bank deposit taking institution under the Banking Act; (b) an insurance company under the Insurance Act; (c) the Sugar Industry Pension Fund; (d) the Development Bank of Mauritius; or (e) the Statutory Bodies Family Protection Fund, on a housing loan secured by mortgage or fixed charge on immovable property and used exclusively for the purchase or construction of his house. (2) The relief under subsection (1) shall apply in respect of a loan secured by a mortgage or fixed charge on immovable property. (3) In the case of a couple where neither spouse is a dependent spouse, the relief under subsections (1) and (2) shall at the spouses’ option be divided equally for each spouse. (4) No relief under subsection (1) shall be allowed— (a) unless the person is resident in Mauritius in the income year in which the income year is derived; (b) where the person or the spouse of the person— (i) is, at the time the loan is raised, the owner of a residential building; or (ii) — (iii) benefits from any new housing scheme set up on or after 1 January 2011 by such competent authorities as may be prescribed; [Issue 9] I5 – 28 Revised Laws of Mauritius (c) where the income of the person, or the spouse of the person, as the case may be, exceeds 4 million rupees in an income year. (4A) For the purpose of subsection (1), the housing loan taken from— (a) the Development Bank of Mauritius shall be for its employees; (b) the Statutory Bodies Family Protection Fund shall be for its members. (5) For the purpose of subsection (4) (c)— “income” means the total of the net income and the income in respect of— (a) dividends received from a resident company or co-operative society registered under the Co-operatives Act; and (b) interest— (i) on a savings or fixed deposit account received from a bank or non-bank deposit taking institution under the Banking Act; and (ii) received on Government securities and Bank of Mauritius Bills. [S. 27A inserted by s. 9 (g) of Act 10 of 2010 w.e.f. the income year commencing on 1 January 2001; amended by s. 8 (f) of Act 37 of 2011 w.e.f. the income year commencing on 1 January 2012 and in respect of every subsequent income year; s. 9 (c) of Act 26 of 2013 w.e.f. 1 January 2013 in respect of the income year commencing on 1 January 2013 and in respect of every subsequent income year; s. 24 (b) of Act 9 of 2015 w.e.f. 1 July 2015 in respect of the year of assessment commencing on 1 July 2015 and in respect of every subsequent year of assessment; s. 27 (e) of Act 18 of 2016 w.e.f. 1 July 2016 in respect of the income year commencing on 1 July 2016 and in respect of every subsequent income year.] Sub-Part E – Relief for Medical or Health Insurance Premium [Heading inserted by s. 12 (b) of Act 26 of 2012 w.e.f. 1 January 2013 in respect of the income year commencing on 1 January 2013 and in respect of every subsequent income year.]