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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)
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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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