Deductibility of Society charges

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    PALAMADA New Member

    I have given out on rent, an apartment I own for a rental of RS 20 K per month. But the society charges RS 6 K per month towards common area maintenance, common facilities like lift operation, security etc. This is collected in advance from the owner and rental any tenant pays is inclusive. With the result, one ends up paying full tax on rental of RS 20 K per month though the net is only RS 14 K. On top, there are internal repairs etc one has to incur for one's own apartment ( i.e., in addition to common area/ society maintenance) to maintain the occupancy of the individual apartment.

    Question 1. Are these society charges deductible to determine the net rental received, which is the reality. The rent, the charges, etc are at arms length and easily comparable with similar apartments in the area.

    Question 2. In the event the tenant is asked to pay the society charges as long as he or she lives there in that apartment, and pay me as owner, the net rent of RS 14 K, does that change the situation. I mean, in that case, would it be right to declare RS 14 k per month as income rather than RS 20 K.
  2. Chandrashekar M

    Chandrashekar M Active Member

    You can choose your second option.
    Last edited: Jan 23, 2018
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