shalini (CA) (525 Points)
03 August 2015Hi,
My client is getting rental income of 20,000 per month which includes 3000/- maintenance charges. I am confused whether I should take 20,000 as rental income and give 30% standard deduction for maintenace charges or take 17000/- rental income.Please guide.
Thanks in advance
Udgam Koomar
(Tax Technologist)
(1949 Points)
Replied 03 August 2015
Even if you consider 17000 as rent you are further allowed 30% so this 3000 get unaccountable. Its better to use 20K as rent figure
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6876 Points)
Replied 03 August 2015
Z
( )
(2960 Points)
Replied 03 August 2015
Full 20,000 is the rent for the purpose of computation, rent here is basically whatever you have received in consideration of letting out the property.This 3000 is also part of the consideration for letting out the property and hence it is includible. Even if there is non monetary benefits then its fair value should also be considered.
From the time since 30% standard deduction has been provided for, maintenance or repairs are not considered.
Rajesh Kumar Gupta
(Senior Divisional Manager)
(714 Points)
Replied 03 August 2015
shalini
(CA)
(525 Points)
Replied 04 August 2015
Dear Rajesh,
Yes, this 3000/- is monthly payment to society for maintenace . Personally I don't think that I can take 17000/- as rent and claim 30 % again for maintenance (suggested by others also).
Thanks
CAclubindia
