Reason for 30% deduction on rental income
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 January 2012
Why is 30% deduction allowed on rental income,under income tax Act,1961??
Thanks in advance
Thanks in advance
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
This deduction includes compensation for all expenses incidental for earning rent like repairs, duties and taxes, maintenance exp,,etc
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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......
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...
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