Reason for 30% deduction on rental income

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2012 Why is 30% deduction allowed on rental income,under income tax Act,1961??

Thanks in advance

Ravikant

Ravikant (Expert)

27 January 2012 It is a Standard deduction allowed from Rent.
This deduction includes compensation for all expenses incidental for earning rent like repairs, duties and taxes, maintenance exp,,etc

Message likes : 2 times

CA Pradeep Kumar Rajput

CA Pradeep Kumar Rajput (Expert)

28 January 2012 when the 30% deduction were not there the expenses of repair and maintenance were allowed from the rental income.....
earlier it was the area for tax avoidance(e.g. people used to show expenses more then income or less rental income)....
in order to pluck this lacuna the department gave 30% standard deduction from rental income so now only 30% allowed toward all expenses so people cannt declared the expenses more then rental income....

friend this is the actual reason behind 30% deduction from rental income......

Message likes : 2 times

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2012 Thanks a lot sir...

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now