Dear Sir,
Yes, always monthly maintenance charges become part of rent and you can use the same for income tax purposes.
I am paying Rs 9000 towards monthly maintenance charges other than the monthly rent. House owner also collects all the other bills for the expenses incurred on repairs in the said property. She uses these to file her Income tax returns. Can I use the amount paid towards maintenance charges as part of the rent paid? I have a tenancy agreement where it is agreed that the monthly maintenance charges will be paid by the tenant.
Dear Sir,
Yes, always monthly maintenance charges become part of rent and you can use the same for income tax purposes.
section 10(13A) of Income tax act maintenance is not forming part of the rent so you cannot seek deduction or HRA exemption on the maintenance part. Alternatively what can be done is you can pay the maintenance as part of rent (adding maintenance and rent the lump sum amount )to the landlord and in turn he pays for the maintenance.
Hi, the maintenance charges paid by you is a part of rent and similarly can be used as expenses in filing of your IT returns ...
1) maintenance charges paid do not from part of monthly rentals paid by tenant
2) merely because you are paying maintenance charges you cannot take the plea that it forms part of house rent paid by you
I have received multiple replies to my query and some are conflicting, so can I request you to please share /direct me to relevant Income Tax section/s that defines this. I would like to keep this communication as a part of my reference just in case if I get any query from the IT department in future. Can I use this fact to file revised returns for the previous year?
See as quoted above section 10(13A) of Income tax maintenance does not form part of rent and HRA exemption on same will not be available
Non occupancy charges shall be borne by owner, why you are paying. Even when the flat is empty, maintenance payable.
Why your agree to pay MC, now you cannot disagree.
You are giving her bills and on your expanses she is getting rebate in IT return. Stop giving her bills.
Simply as per income tax rule maintenance amount can not be treated as rent. Rent amount mentioned in the agreement will only be considered as rent for tax purposes.
If you pay maintenance charges it is advisable to increase the rent amount by the amount of maintenance charges in agreement.
If the landlord give you the receipt inclusive of Maintenance Charges for the rent then you can claim u/s 10.
But the agreement should specify the component of rent and maintenance in one. Else you can be in problem if there is a scrutiny
For the purpose of sections 22 and 23 of the Income –tax Act, 1961 (Act), the ambit of the term “rent” is very wide. It includes any amount that was paid in consideration of the property being let.
2) Punjab and Haryana high court
ITA No. 369 of 2015
has held Maintenance charges received in relation to the property should be regarded as “rent” for computing income taxable under the head “income from house property
if you are paying rent as well as maintenance charges, then you are entitled to claim both those amounts as deductions from your income
just keep the bills with you as proof of payment
the bills need to be duly acknowledged by the owner stating that amount therein stated is duly paid by you and received by her
You cannot include the monthly maintenance charges in the rental amount, that is separate to this.
However since you have already paid the maintenance charges and have a receipt for that, you may claim IT exemption on this expenses in a different section of the IT act.
Home loan principal payments are deducted from taxable income up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Other investments/expenses also qualify for the Section 80C limit