02 February 2009
In Delhi, a fee is being charged by Municipal Corporation of Delhi for properties located on those roads (Notified roads)which can be put to commercial use. This charge is referred to as 'Conversion Charge' and is payable annually. This charge is separate from the regular municipal taxes / house tax payable on these properties. Now, if such a property is generating rental income because of commercial use after paying conversion charges, then can these charges be deducted from income generated from the property ? Pl also consider that the rental income from this property is being offered for taxation under the head INCOME FROM HOUSE PROPERTY.
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