Tax deduction on court expenses

You cannot claim the court charges as expense against the Rental Income. 

Only following expenses can be claimed against Rental Income:-

1) Municipal Tax (Actual Paid)

2) Standard Deduction @ 30%

3) Interest on Loan taken for Construction / Renovation of House Property.

Regards,

Devendra Kulkarni

Unfortunately, court expenses cannot be deducted from rental income.

You cannot claim the court charges as expense against the Rental Income. 

Only following expenses can be claimed against Rental Income:-

1) Municipal Tax (Actual Paid)

2) Standard Deduction @ 30%

3) Interest on Loan taken for Construction / Renovation of House Property.

 agree

Standard Deduction of 30% is flat it covers all your expenses, you need not show the details of them, whether you have incurred or not.  As the statute has provided 30% flat deduction. So don't feel yourself cheated.

Although you cannot claim any deduction from rental income but you can claim all the legal expense in this case as an expense for transfer while conducting the sale of the premises . refer Naozar Chenoy v. CIT [1998] 234 ITR 95 (AP).