What is Standard Deduction?
Standard Deduction of 30% is given to compensate annual repair and maintenance expenses incurred on House Property. For example: Suppose you have rented out a property and the net annual value was12 lakhs in the previous Financial Year. You can deduct 30% i.e.3.60 lakhs for the purpose of repair and maintenance, regardless of the actual amount spent by you on repair and maintenance. Your taxable income would thus be8.40 lakhs in the previous financial year.
