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deduction of municipal tax

This query is : Resolved 

22 November 2009 Indian citizen recieved rent from house let out outside india.Will he deduct municipal tax paid from rent recieved from outside india.

22 November 2009 i think yes,it should be deducted.

22 November 2009 Proviso to Sec 23(1) clearly specifies that taxes charged by local authority in respect of house property shall be deducted in determining annual value of property. It shall be deducted only if paid during the previous year

23 November 2009 Will it be deducted even if it is paid to foriegn govenment.

23 November 2009 Even where the property is situated outside India,taxes levied by local authority of that country are deductible in deciding the annual value of that property.

Citation :- CIT Vs. Venugopal Reddiar (1965) 58 ITR 439(Mad).


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