We have taken a land and building on a lease for 25 years and is regularly paying lease rent. Further we have given the same on rent and getting rental income. Now the AO is treating us as the deemed owner and is not allowing me the deduction of rent paid. He is only allowing me the standard deduction of 30%. How can I claim the rent paid?
Yes, u r deemed owner of the property in view of the decision of Aanant Raj Properites reported in TTJ 119 TTJ 865 (TM) as far as deduction of rent paid is concerned it is allowable in my view you must read 149 ITR 253(Del) and 69 ITr 38 (bom) for ground rent and for allowability see 94 ITR 537
if, the income from sub letting is offerred as income from other sources, then the rent paid can be claimed by the assesee.
b shanmuganathan