AdvocateKhoj
Login : Advocate | Client
Home Post Your Case My Account Law College Law Library
    

Report No. 12

24. Deductions.-

(1) Income chargeable under the head "Income from house property" shall, subject to the provisions of sub-section (2), be computed after making the following deductions, namely-

(i) where the property is in the occupation of a tenant, one half of the total amount of the taxes levied by any local authority in respect of the property.

[Section 9(2), 3rd proviso,]

(ii) in respect of repairs,-

(a) where the property is in the occupation of the owner, a sum equal to one-sixth of the annual value;

[Section 9(1)(i), part]

(b) where the property is let to a tenant and the owner has undertaken to bear the cost of repairs, a sum equal to one-sixth of the reduced annual value;

[Section 9(1)(i), part]

(iii) where the property is in the occupation of a tenant who has undertaken to bear the cost of repairs-

(i) the difference between the reduced annual value and the amount of rent payable for a year by the tenant, or

(ii) one-sixth of such value, whichever is less;

[Section 9(1)(ii), main para]

(iv) the amount of any annual premium paid to insure the property against risk of damage or destruction;

[Section 9(1)(iii)]

(v) where the property is subject to a mortgage or other capital charge, the amount of any interest on such mortgage or charge;

[Section 9(1)(iv), part]

(vi) where the property is subject to an annual charge, not being a capital charge, the amount of such charge;

[Section 9(1)(iv), part]

(vii) where the property is subject to a ground rent, the amount of such ground rent;

[Section 9(1)(iv), part]

(viii) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital;

[Section 9(1)(iv), part]

(ix) any sums paid on account of land revenue in respect of the property;

[Section 9(1)(v)]

(x) amounts spent to collect the rents from the property, not exceeding six per cent. of the reduced annual value of the property;

[Section 9(1)(v4)]

(xi) where the property is let and was vacant during a part of the year, that part of the reduced annual value which is proportionate to the period during which the property is wholly unoccupied or, where the property is let out in parts, that portion of the reduced annual value appropriate to any vacant part, which is proportionate to the period during which such part is wholly unoccupied;

[Section 9(1)(vii)]

(xii) such amount, in respect of rent from property let to a tenant which the assessee cannot realise, as may be prescribed.

Explanation.-In this sub-section, "reduced annual value" means the annual value as reduced by one-half of the total amount of taxes levied by any local authority in respect of the property.

[New-Granted by notification No. 878F dated 21-3-1922, item 38]

(2) The total amount deductible under sub-section (1) in respect of property of the nature referred to in section 23(4) [sub-section in section defining annual value, relating to residential house not occupied] shall not exceed the annual value of the property as determined under section 23 [section for annual value].

[Section 9(2), 2nd proviso last line]



Income-Tax Act, 1922 Back




Client Area | Advocate Area | Blogs | About Us | User Agreement | Privacy Policy | Advertise | Media Coverage | Contact Us | Site Map
powered and driven by neosys