Deduction under section 24a of the income tax act, 1961
sakthi
(Querist) 05 September 2025
This query is : Resolved
Respected Learned Experts, I am facing a corruption case for holding disproportionate assets. I am having rental income from immovable properties wherein 30% of standard deduction is allowed under Income Tax Act, 1961. The prosecution has taken the income after deducting the 30% of standard deduction deemed to have been expenses for maintenance. But there is no actual maintenance cost involved. The Income Tax Act provides for such standard deduction as a relief to the land lord and the tax liability is only on the net of rental income after the deduction of 30% rental value. I request the Learned Experts to guide me how to convince the court to take the Gross Rental Income for account. Any case laws, if available on this subject may please be mentioned. As I am appearing as Party In-Person, your valuable guidance is much obliged.
Advance Thanks to one and all in the Forum.
T. Kalaiselvan, Advocate
(Expert) 06 September 2025
Since you are appearing as party in person you know the details of the case hence yo may look for a suitable citation be searching through internet.
Are you facing a DA case or any income tax case?
Without knowing proper background details any opinion rendered here would be a misguidance
kavksatyanarayana
(Expert) 06 September 2025
Corruption case due to disproportionate assets, how is it related to tax deduction? Yes, standard deduction of 30% on the rental income, but how is it related? Are you a government employee, either central or state?
sakthi
(Querist) 07 September 2025
Respected Learned Experts S/Shri T. Kalaiselvan and KAVK Satyanarayana, I submit my heartful thanks to your response. I am a Central Government employee and facing corruption case due to disproportionate assets. The prosecution claims that as I have availed the standard deduction of 30% under Section 24(a) of the Income Tax Act, the net rental income alone would be taken as income after standard deduction. However, I have not incurred any expenditure towards maintenance. The Income Tax Act permits assesses to have a rebate of 30% on rental income. whether maintenance expenses incurred or not. Hence, I am claiming for the gross rental income as the income under the check period. Hence I pray your kind heart to guide me in the matter and oblige.
T. Kalaiselvan, Advocate
(Expert) 07 September 2025
How do you expect the law to bend in your favor when the law is clear about it.
Section 24(a) of the Income Tax Act provides for a deduction of 30% of the net annual rental value of the property in the form of standard deduction. However, this tax deduction is not available for properties used by the owner. You can claim a flat 30% deduction on the property's net annual rental value under Section 24(a) of the Income Tax Act.
Where the primary purpose of owning the property, whether residential or commercial, is to rent it out, the rental income is classified as ‘Income from House Property.
The rental income is taxed based on the Gross Annual Value (GAV), which is the higher of the actual rent received or the fair market rent of the property.
Taxes paid to local authorities can be deducted from GAV to calculate the Net Annual Value (NAV).
A 30% standard deduction on NAV is allowed to cover repairs, maintenance, and other associated costs
sakthi
(Querist) 12 September 2025
Much obliged by the response of Learned Expert Shri T. Kalaiselvan
