Income from House Property

[CA AJAY KUMAR AGRAWAL]

As per agreement monthly house rent is ₹ 10000/- & paid directly to land lord. In addition ₹ 2000/- Per month is paid by tenant to manager of society towards maintenance. Rent agreement has mention of these both amount. What amount is to be shown by land lord towards Income from House Property?

[Ganeshan Kalyani]

Sir, the maintenance amount should be included to call a income from house property. As per Sec. 24 of Income Tax Act, 1961 a standard deduction of 30% of Value is provided. Thus the maintenance amount would get covered under standard deduction. For ease of your reference I am reproducing the relevant extract of the provision as under:

[ Deductions from income from house property.

24. Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely:-

(a) a sum equal to thirty per cent of the annual value;....

Thanks.

AI Summary

Income from house property: include tenant-paid maintenance as part of gross rent, eligible for standard deduction. Include the tenant-paid maintenance recorded in the rent agreement in the landlord's income from house property; apply the statutory standard deduction equal to thirty per cent of the annual value to the aggregate receipts, which covers routine maintenance charges when computing taxable income under that head.