House Property
This query is : Resolved
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?
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?
14 April 2009
advance municipal taxes are deductible & it is deductible to the extent of GAV.
15 April 2009
No.
Municipal taxes paid in advance is not allowable.
It is allowed to the year to which it pertains to.
Municipal taxes paid in advance is not allowable.
It is allowed to the year to which it pertains to.
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)
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)
15 April 2009
Proviso to section 23(1) says...property tax levied by a local authority. In view of that, according to me, advance payment of municipal taxes cannot be claimed as deduction.
15 April 2009
Also, the NAV cannot be negative, so municipal taxes are allowed to the extent of GAV.
15 April 2009
It Can be claimed at full
Section clearly states that it is to be claimed on payment basis, actual amount paid during the year, so the entire amount paid by you can be claimed by you what ever be your GAV
Section clearly states that it is to be claimed on payment basis, actual amount paid during the year, so the entire amount paid by you can be claimed by you what ever be your GAV
16 April 2009
It is on payment basis but taxes paid in advance are not allowable.
Mr.Chandrakant read the law and then cite your opinions for the sake of right answers to the users of this section.
Mr.Chandrakant read the law and then cite your opinions for the sake of right answers to the users of this section.
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