House Property

This query is : Resolved

CA Nitin Wadhwani (Querist)
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31 August 2008 author : Pavan Faliya
Posted On : 8/31/2008 6:15:36 PM
Gross Annual Value is Rs.36000
Municipal Taxes paid Rs.50000
Net Annual Value Rs.(14000)

Query is whether 30% Deduction of Sec.24(a) Should be taken on negative NAV ?

We have practice of taking deduction of Sec.24(b) of interest on Loan even if there is no NAV.

Sec. 24(a) does not say that we can't take deduction from negative NAV.

Please answer.

Answer: In This Case Deduction Of Muncipal Taxes Will Be Available Upto Amt of GAV.

NAV Will Become Zero.

CA. Aryendra

CA. Aryendra (Expert)
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01 September 2008 No, deduction will not be allowed because there is no concept of NEGATIVE value of NAV in Act and in your question NAV is not negative but NAV is ZERO or NIL

K V Subba Rao

K V Subba Rao (Expert)
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01 September 2008 Do you think any IT Official will believe your statement of Municipal Taxes for the year being higher than Annual Rental Value

CA Nitin Wadhwani

CA Nitin Wadhwani (Querist)
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02 September 2008 100%

SANDEEP AGGARWAL

SANDEEP AGGARWAL (Expert)
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05 September 2008 If Gross Annual Value is less due to vacancy of property than it is ok. Other wise you must take fair rental value or municiple value to arrive at Gross Annual Value.

Regards,
Sandeep Aggarwal

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