Subletting charges required under a lease reduce rental income before the standard house-property deduction is applied.

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....Subletting charges paid to MIDC as a mandatory condition for subletting leasehold property are treated as an integral cost of earning rental income. Taxable income from house property is therefore computed on net rental income after reducing those charges. The standard deduction available for house property income under section 24(a) does not prevent deduction of such pre-receipt expenditure, because the charges are necessary to commercially exploit the leasehold property through subletting. The disallowance of the charges was deleted and the deduction was allowed.....