I am receiving 14 lakhs annual rent from my commercial property. I have checked some websites and have understood this so far,
Taxable Rent = (Annual Rent) - (Municipal/Property Tax + 30% of Total rent towards repairs & maintenance + interest paid towards loan up to 30K)
My questions, 1) 30% of total rent towards repairs - Do I need to show bills or is it a flat deduction? 2) I have borrowed a 'Loan against Property' (Not a home loan), so will the interest paid towards this loan be deductible? 3) Is service tax payable on total annual rent or Total rent after these deductions?
Just one clarification on point-2, i borrowed this loan against property (LAP) for contructing this building, however since it is a LAP it could have been used for anything else too like marriage. There is no document to support that I borrowed this loan for contruction. So, will the interest still be eligible for deduction?