What are the deductions available to me in case of a property given on rent or which is deemed to be let out?
The following deductions are permissible: • 50% of Annual Value towards repairs and collection charges ( allowed in notional basis irrespective of the amount incurred). • Insurance premium paid for the property. • Municipal tax paid. • Annual charge on the property this is a charge not voluntarily created by the assessee ( for e.g. if a person gets a property from his father in terms of a will and one of the terms of terms of the will is that a certain monthly allowance shall be paid by the son to his mother then such charge will be allowed). • Ground Rent payable on land taken or lease. • Interest on money borrowed for the purpose of construction or acquisition of a house property.
