Deduction under section 23 of income tax act,1961
This query is : Resolved
27 December 2011
Dear Sir,
Whether following charges paid to MCD allowable under Section 23 from rental Income:-
1. Change of Land use charges paid one time.
2. COnversion charges/misuse charges paid every year.
3. Parking charges paid one time...
Thanks
Regards
Rohit
Whether following charges paid to MCD allowable under Section 23 from rental Income:-
1. Change of Land use charges paid one time.
2. COnversion charges/misuse charges paid every year.
3. Parking charges paid one time...
Thanks
Regards
Rohit
28 December 2011
All the 3 categories of expenses would not be allowable from rental income.
Only municpal taxes actually paid would be allowed as a deduction from the gross annual value of property calculated as per section 23 of the IT Act.
After deducting the muncipal taxes paid the resultant figure is Net annual value.
Only following two deductions are allowed from Net annual value -
1. Standard deduction = 30% of NAV
2. Interest on borrowed capital subject to conditions, limits and restrictions given in the section.
Hope the above response would resolve your query. Do let me know if you have any further questions with respect to the same.
Regards
Anand Eriwal
Only municpal taxes actually paid would be allowed as a deduction from the gross annual value of property calculated as per section 23 of the IT Act.
After deducting the muncipal taxes paid the resultant figure is Net annual value.
Only following two deductions are allowed from Net annual value -
1. Standard deduction = 30% of NAV
2. Interest on borrowed capital subject to conditions, limits and restrictions given in the section.
Hope the above response would resolve your query. Do let me know if you have any further questions with respect to the same.
Regards
Anand Eriwal
29 December 2011
Agreed with Anand
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- Rental income gst and it purpose
- Gift Received from nonblood relative
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Experts need help
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- EPF FULL & FINAL RULES IN 2026
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
