House Property

This query is : Resolved

balaji (Querist)
Follow

14 April 2009 Respected Sir,
Whether Municipal Tax paid in advance can be claimed as a deduction from Gross Annual Value for a let out property?
In such a case, if Municipal tax paid exceeds Gross annual value, whether entire amount paid as municipal tax can be claimed as a deduction?

Jitender

Jitender (Expert)
Follow

14 April 2009 answered.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
Follow

15 April 2009 No.
Municipal taxes paid in advance is not allowable.
It is allowed to the year to which it pertains to. No.
Municipal taxes paid in advance is not allowable.
It is allowed to the year to which it pertains to.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
Follow

15 April 2009 as per the provision
muncipal tax LEVIED ( i.e. actually accrues to assessee and not paid in advance) and paid( i.e. actually paid not remaining outstanding) by owner( i.e. not by tenant or any other person) is deductible from GAV.

So , Muncipal tax paid in advance is not deductible.

If muncipal tax > GAV, then
GAv will be negative and income from house property will come negative(loss).
but remember in case Muncipal tax > GAV, you can not claim standard deduction u/s 24(a)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now