Income from House Property

[RAVI SONI]

A Private Limited company M/S XYX Private Limited has given one of its owned premises at rent for the period of 9 years and rent agreement was duly registered by M/S XYZ Private Limited. The total cost incurred for registry expenses was Rs. 350000/-, in this regard I want to know whether the registry expenses incurred by M/S XYZ Private Limited is deductible under the Income Tax Act, 1961.

If this expenditure is deductible then can this be claimed in the same year when M/S XYZ Private Limited has incurred registry expenses or else the expenditure can be equally divided for the period of 9 years.

AI Summary

Deductibility of registry expenses: not allowable; only local property taxes, standard deduction and interest are permitted.
Registry expenses incurred in respect of a leased building are not deductible from income from house property; only local authority taxes are deductible from annual value, and allowable deductions against such income are limited to the standard deduction and interest, with no other deductions or amortisation permitted.