Under Section 24(a) of the Income-tax Act, 1961, what percentage of the an- nual value of an income from house property is allowed as a standard deduction?
Explanation & Strategy
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Section 24(a) of the Income Tax Act allows a standard deduction of 30% of the net annual value of house property income. This flat deduction covers all expenses — repairs, insurance, collection charges, etc. The actual expenditure doesn't matter; the 30% is automatic.