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Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2011 why 30% deduction under sec.24(1) not available to U.R.R subsequently received. Some body told me that URR is already deducted in P.Y it self but we deduct standered deduction as a % of NAV which does not include URR it means that 30% deduction is not claimed on URR then why we should not claim standered deduction on URR recovered subsequently ??? anyboby kingly assist plz...........

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

08 March 2011 1. No one knows when URR will be recovered.
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2. Assessee is allowed to claim such URR by
reducing the same from Annual Rent.
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3. Gross Annual Value is a concept dependent
upon particular previous year's circumstances.
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4. For that particular time period, had you shown URR, as receivable, nobody was going to deny 30% SD on such an enhanced amount resulting in higher NAV.
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5. Logically you may be right, but if you go through a case where Annual Rent is far less than the reasonable expected rent, you will realise that, 30% SD on URR will not stay anywhere.
6. In my view the intention of Section 25AA, in overall, is beneficial to the assessee at its present state.

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