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.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
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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