Deductions in computing property income Section 15A
Previously, there was an option available only for Individuals and AOP deriving income from property exceeding Rs. 4 million to pay tax either at gross rate of tax on rental income as per slabs applicable to individual or AOP or to pay tax on net basis.
Now, the Finance Act 2020 has removed this limit and after that individual/AOP can opt to pay tax either on gross basis using rates specified in Division VIA of part 1 of first schedule (rates specified for income from property) or on net basis using rates specified in division I of part 1 of first schedule. (Slab rates for non-salaried person and AOP)
Furthermore, for the purpose of deduction of expenses on account of administration and collection charges, the Finance Act has changed the limit from 6% to 4%.
