Whether Commission paid for arrangement of Tenant deductible from NLV

Tax queries 159 views 1 replies

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acctt

33 Points Joined July 2013

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.