27 January 2016
Hello friends,
as rental income is exempt up to 30% u/s 24b in the hands of owner(whether earning business income or not). but on the other hand, rent is allow as deduction only in case of assessee earning business income.
strange no benefit to salaried employee who take room on rent and paid dues on timely basis, but does not get any deduction of rent in his salary income. And at the same room owner pay tax only 70% rent received from salaried employee besides claiming all the benefits as available to employee.
plz guide me.
27 January 2016
iNCOME FROM HOUSE PROPERTY-Standard Deduction – Standard Deduction is 30% of the Net Annual Value calculated above. This 30% deduction is allowed even when your actual expenditure on the property is higher or lower. Therefore this deduction is irrespective of the actual expenditure you may have incurred on insurance, repairs, electricity, water supply etc. For a self occupied house property, since the Annual Value is Nil, the standard deduction is also 0 on such a property.
Salary Employee get benefit if he is in rented premises , should have hra compnent in Salary he will get deduction u/s 10(13A)
09 February 2016
Thanks sir, but my query is for such employee who didn't get any hra from employer and have to paid rent for his rental premises. and didn't own any property in india in his own name.
CAclubindia
