Standard deduction on rent

Tax queries 994 views 3 replies

Vivek

Finance Professional

73 Points Joined November 2012

Hi Experts,

My Query pertains to eligibility for Standard Deduction.

Lets say, an Assessee has a 2 storied building. One is Self-occupied. The other one is let out to a bank on rent. Also, the roof-top of the building is let out to a Mobile Towers company for installation of mobile towers.

Rent from Bank Rs.35000 per month

Rent from Mobile Towers Rs.12000 per month.

Can the Assessee in above case (Tenants are companies and NOT individuals) deduct 30% as Standard deduction from Gross Taxable income ??????

Also, if the Housing Loan Interest is more than 2 lakhs per annum, can the assessee claim complete rebate or is it restricted to 1.5 lakhs.

Many Thanks in advance.

Replies (3)

CA Shruti Gupta

CMA FINAL CS Final

1434 Points Joined July 2011

first of all ...

assessess can claim standard deduction u/s 24(a) @ 30% from G.T.A

IN RESPECT OF INTEREST ...IF interest is related to exclusivly for same building than 1/3 allowed to everything,,,,

i .e from self occupied part....Rs.66666 (200000/3)is allowd n for both tolet part also claim 66666

pulluruvikas

26 Points Joined May 2013

Standard deduction can be claimed without any problem.....

The interest in this case is to be dealt in the following manner

the amount of interest should be apportioned on an appropriate basis and the deduction can be claimed for that amount as per sec24 and if the amount of rent for SOP is more than 1.5 lakhs then the deduction is restricted to 1.5 lakhs