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Whether Commission paid for arrangement of Tenant deductible from NLV

Tax queries 209 views 1 replies

1. We paid a commission of Rs. 2 Lakh, through account payee cheque, in respect of letting out the commercial property my query is whether the same are deductible from NAV ? 

2. we also paid appx 5 Lakh to Municipal Corporation as land use conversion charges  & parking charges, whether this amount also deductible from NAV ?

Kindly Advise.. 

Replies (1)
1. I don't think 2 lakhs is deductible. You will get 30% flat deduction from NLV.

2. 5 lakhs paid to Municipal Corporation is not deductible from NLV.
This 5 Lakhs is a capital expenditure which will be added to the property cost.


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