Dear Friends,
i have a doubt about the following;
1) we hv taken loan for purhcase of property and receive rent for the said property say rs.200000/-pa. and we pay interest on loan for the the said property say Rs.50000 pa. DOUBT can we deduct the interest amt. from rent u/s 57 of income tax act. if yes, can we take the deduction of repairs & maintenance?
thanx
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What is the nature of the property?
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In case of let out property, following will be allowed as deduction –
(a) Municipal tax – The deduction will be permitted on actual payment basis
b) Standard deduction of 30% of (gross annual value less municipal tax) [section 24(a) of Income Tax Act]
(c) Interest on capital borrowed to acquire or construct the house property subject to limit explained below [section 24(b) of Income Tax Act]
Hence u can deduct Interest amount but not repairs & maintenance bcoz Standard deduction of 30% is allowed so no other deduction.
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