Income from House Property, Income Tax

[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.

Posts / Replies

[CA. Surender Gupta]

As per section 23 of the Income Tax Act, 1961, only the taxes levied by any local authority in respect of the property are allowed to be deducted from the Annual Value.

As per section 24 of the Income Tax Act, 1961, only the standard deduction and interest portion only is allowed to be deducted.

No other deduction can be claimed by the assessee.