expenses regarding rental income

[afshan]

i just wanted to inquire that while computing income chargeable under the head PROPERTY whether the deductible expenses like property ta any cess or tax n so on that are admissible shall be charged fully or proportionately if the property is not rented for compelete 12 months as it is not mentioned in any of the provision in respect of rental income

afshan

[Tahir]

Afshan,

while computing the taxable income under the head 'income from property', all admissible expenses including propert tax are claimed in full even if the property remains vacant during the tax year. there is no provision in the law to pro rate the admissible expenses like property tax, interest exp. etc.

Regards,

Tahir

[Sarfaraz]

AOA
there is no proportion formulae for deductions while computing income from property

There is a will there is a way.

[aamersikandar]

AOA
I do not agree with both above comments. They may be right in books but department will never allow them. The current position is that you only show revenue for number of months the building has been lent, thus other expenses for non rent period are automatically prorated. As regards the pro rating formula , may I inform you that the fundamental defination of rentaltax scope includes that tax is amounts expended to earn income are only deducted. For period without income their is no deduction.

Aamer Sikandar

[aamersikandar]

AOA
I do not agree with both above comments. They may be right in books but department will never allow them. The current position is that you only show revenue for number of months the building has been lent, thus other expenses for non rent period are automatically prorated. As regards the pro rating formula , may I inform you that the fundamental defination of rentaltax scope includes that tax is amounts expended to earn income are only deducted. For period without income their is no deduction. For more clarification write me exact details at [email protected] or www.asbc.com.pk


Aamer Sikandar