16 December 2014
An individual built up a shopping complex and has paid Rs. 5.5 Lakhs in this year as one time tax on the property levied by Revenue Dept.(Village Office). Besides he pays annual property tax levied by panchayath office( local authority).
Please solve that whether one time tax is deductible from rental income as property tax as per NN29/2012. Whether meaning of local bodies include taxes on property levied by state Govt. agencies?
17 December 2014
While calculating Income Chargeble under the head Income from House Property, Dedution towards taxes charged by Local Authority will be available.
Such Deduction will be on paid basis irrespective for the previous years.
Taxes on property levied by State Government will be not be available for dedution.
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