Case Law Details
Saif Ali Khan Vs ACIT (ITAT Mumbai)- With regard to the deduction of Society charges, we find that it has also been disallowed by the AO on the ground that since a flat amount of 30% of annual value is allowed, no other deduction is allowable. However, we find that sec. 24(a) reads as under B
24. Income chargeable under the head “Income from house property” shall be computed after making the following deductions, namely:–
(a) a sum equal to thirty per cent of the annual value;”
Thus, from the above, it is clear that a sum equal to 30% is allowable from the annual value so determined u/s.23(1) of the Act. In other words, the deductions u/s. 24 are to be given from, and calculated on the basis of, the annual value so determined.
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Dear Sir,
My tenant paid Rs. 132400 during FY 18-19
Out of which Rs. 13500 was interest free security
I paid, Rs 33120 to society as maintenance charges
Question: Can I deduct Rs. (13500 + 33120) from rental income while filing ITR1?
Following is specified in rent agreement:
(1) The lesser has agreed give above said premises to the lessee on rent for monthly rent of Rs. 13500 including maintenance and club charges.
(2) Lessee shall pay one month interest security deposit (refundable after deducting charges if any)
Note I have already refunded security deposit in FY 19-20 after vacation of house.
Please reply.
Thanks