Deduction u/s 24a @30% on Rent received on COMMERCIAL PROPERTY

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Quick Summary

Income received from renting out commercial properties, such as offices, is taxed under the 'Income from House Property' head. Therefore, you can claim a standard deduction of 30% under Section 24(a) of the Income Tax Act, provided you are not claiming depreciation. This deduction applies regardless of whether the property is residential or commercial.

Pramod Shahu

Pramod Shahu (Querist)

23 July 2022 I have a commercial property ( office) in Ahmedabad city area and have received rent Rs.240000/- p.a.

Can I avail the deduction u/s24a @30% on NAR?

I have some opinion from my collegues that deduction u/s 24a available on only house rent income not Commercial or Industrial property is it right?

Pramod Shahu
8758872406

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 July 2022 In case you are not claiming any depreciation treat it as house property under income tax and claim 30% deduction.

Adv. Ravish Bhatt, ADIT, CIOT

Adv. Ravish Bhatt, ADIT, CIOT (Expert)

26 July 2022 Income of rent from whether a residential or a commercial property will be taxed under head of "Income from House Property". Deduction u/s 24(a) will be available even for a commercial property rented out.

It is just that Nomenclature is "Income from House Property"; however, this income from house property will any buildings or lands appurtenant thereto without any distinction as to whether it is a commercial property or a residential property. Deduction u/s 24(a) will also therefore be available.

Author: Advocate Ravish Bhatt
Gmail: ravishdbhatt@gmail.com
Link to Linkedln Profile: https://bit.ly/3IDGfsU

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