Deductions from gross rent: taxes, a standard repair allowance, and loan interest with pre acquisition interest amortised annually.

Allowable deductions from gross rent include taxes actually paid to the local authority, a standard deduction of twenty percent of gross rent for repair and maintenance, and interest on loans for acquisition, construction, repair, renovation or repayment of such loans. Pre-acquisition or pre-construction interest is deductible in five equal instalments starting from the year the property is acquired or constructed, reduced by any portion already allowed under other provisions of the Code.

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