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Queries on some Tax Issues
19th Nov 1998 RAJESH @wipsys.ge.com
Hello Folks
I've some queries on Income Tax issues, more particularly, pertaining to
deductions towards the "House Rent" section. They are:
1. What happens to the interest lost on the "deposit" amount paid to the
landlord. Can such opportunity cost be added to the actual house rent paid
? If yes, at what level of interest rate ? And if no, don't you think it's
unfair ?
2. What kind of documents are needed to avail this deduction. Do we need a
revenue-stamped rent receipt from the landlord ? For example, my landlord
has given me a cash voucher kind of thing as the acknowledgement for the
rent paid. He doesn't have a formal receipt book. Will that work ?
3. If two or more persons are sharing a flat, then should the receipt be
in the name of all the tenants ? What if the receipt is issued in the name
of only one of those tenant ?
I've observed that there are some qualified chartered accountants in this
list. Can some of them please help me out of this confusion. Others too
are welcome to contribute.
Thanks in advance.
Regards
Rajesh Agrawal
Bangalore
email : [email protected]
[email protected]
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20th Nov 1998
Tejinder Singh Rawal @nagpur.dot.net.in
At10:55 AM 11/19/98 +0530, RAJESH wrote the following message: Hello Folks I've some queries on Income Tax issues, more particularly, pertaining to deductions towards the "House Rent" section. They are: 1. What happens to the interest lost on the "deposit" amount paid to the landlord. Can such opportunity cost be added to the actual house rent paid ? If yes, at what level of interest rate ? And if no, don't you think it's unfair ? No. Unfortunately there is no equity in taxation. The law has to be interpreted as it exists, and benevolent construction is not acceptable. As per the law that exists, no benefit can be claimed form such opportunity cost. 2. What kind of documents are needed to avail this deduction. Do we need a revenue-stamped rent receipt from the landlord ? For example, my landlord has given me a cash voucher kind of thing as the acknowledgement for the rent paid. He doesn't have a formal receipt book. Will that work ? Formal receipt book in not necessary. Any documentary evidence, which will prove the payment, with details such as name of landlord, date of payment, amount etc would suffice. Of course, the Assessing Officer is free to make further enquiry if he is not satisfied. 3. If two or more persons are sharing a flat, then should the receipt be in the name of all the tenants ? What if the receipt is issued in the name of only one of those tenant ? It is preferable that receipt is there in the names of all the tenants. If it has not been done so, any other evidence of sharing of the rent, would be enough. Regards, Tejinder -------------------------------------------------------------- Tejinder Singh RawalT.S.Rawal & Co., Chartered Accountants,Nagpur, IndiaVoice:(+91 712) 525423/527376/548941/548850 Fax : (+91 712) 539122 mailto:[email protected], [email protected] Indian Taxation Site http://www.BhaaratEkKhoj.com/india/tax India Tax List: http://www.BhaaratEkKhoj.com/lists/
20th Nov 1998
B.G. Mahesh @hotmail.com
> >Hello Folks > >I've some queries on Income Tax issues, more particularly, pertaining to = >deductions towards the "House Rent" section. They are: > Rajesh and IINN I take this opportunity to tell the list about the "Indian Tax" mailing list which has been operation for about 2 months. See http://www.mahesh.com/lists/ Tejinder Singh Rawal is the moderator and has been doing a GREAT job in moderating and responding on that list. You will love that list. regards, ----------------------------------------------------------------------- B.G. Mahesh | http://www.mahesh.com/ Internet Consultant | http://www.visual-interactive.com/ Email: [email protected] | http://www.careerindia.com/
