Maintanace charges deduction from leased rent

This query is : Resolved

joginder (Querist)
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11 August 2011 Hello friends,

I am presently serving in a nationalize bank and bank has provided me a leased accommodation. Please tell me whether Society Maintenance charges are deductible for the purpose of calculating Taxable Lease Accommodation Amount.

Please give reference of IT or any case law

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 August 2011 In a case where 15% or 10% of salary is taken as criteria for perquisite, it is taxable at such percentage only and the same has been prescribed for "rent" only.
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Maintenance is different from rent of the premises.
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As I think, the bank is making payment of lease rental and such lease rental being less than 10%or 15% of your salary, is being added as a perquisite in your salary.
There are 2 possibilities-
1) Lease Rentals includes Maintenance charges and Bank is paying it like 6000 Rent+1000 Maintenance to the owner of the property. In this case perquisite taxable in your hand is @ 7000/ pm.
-Maintenace charges will be paid by the owner in this case.
2) Lease Rentals does not includes Maintenance charges and Bank is paying it like 6000 Rent.
In this case perquisite taxable in your hand is @ 6000/ pm.
-Maintenace charges will be paid by you.
You can not deduct as they are not forming part of the perquisite.
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3) In this case company gives you maintenance charges and you deposit the same with the society. Then this is a case covered in Para 1)
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I hope that there is no ambiguity now.
You can not deduct Maintenance Charges as such.

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