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Deductions from property income

Regarding ‘Deduction meant for property income is available only to the owner,’ in The Hindu dated June 4, 2007, the observation made at the end of the answer is incorrect. Under Sec. 80C(2)(xviii)(d), the amount of stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee is deductible.

The query to which the answer was addressed related to the computation of income from property. The only deductions available in such a computation of property income are those listed in Sec. 24 of the Income-tax Act. Sec. 80C(2)(xviii) treats stamp duty and registration charges as part of the purchase consideration, so as to allow the repayment of loan for meeting such consideration under Sec. 80C. It has no relevance for computation of property income. In other words, income from property cannot be reduced by any part of the cost of the property.The answer given needs no correction.

S. RAJARATNAM

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