krina (student) (1263 Points)
09 February 2011can vacancy clause be deducted 4m fair rent or market value if they are higer of actual rent but restricted to standard rent ..
i know that one can deduct amt of vacancy 4m actual rent received but what if fair rent or market rent is higher??
wil it be deducted 4m here??
if possible can any on explain with example ..
thankss
Chandrashekar
(Chartered Accountant)
(32 Points)
Replied 09 February 2011
Yes you can deduct loss on vacancy,
for example please refer sum no. 90.1-3P6 from direct tax law book of CA final by V.K.singhania
krina
(student)
(1263 Points)
Replied 09 February 2011
i m ipcc student ..
& i read in ipcc (icai) tax module ..
if any one has it plz refer to page no. 4.61
here they hav not done so ??
Dheeraj
(Learner)
(1100 Points)
Replied 09 February 2011
the deduction of rent is allowed only if the actual amount (RENT) recd. is less than expected rent because of vacancy
otherwise it is not deductible, and the whole amount should be taxable
nidhi
(student)
(58 Points)
Replied 10 February 2011
loss due to vacancy cannot be deducted from fair rent...
say where a house was constructed on august then,then fair rent calculation would be from august to march and not for full yar as before the proerty itself was not there hence out of d purview of taxability
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