House Property NAV

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Quick Summary

When calculating the Net Annual Value (NAV) for house property income, it's important to correctly identify which municipal taxes are deductible. Generally, a composite bill from the municipality covering property tax and water charges should be considered. While urban land tax might be nominal and includable, solid waste management charges are typically not. Separate bills for additional supplies like water should not be added, as a standard deduction is allowed for such expenditures.

H Thakar

H Thakar (Querist)

16 July 2022 I am computing income from house property. I am just confused regarding Municipal Taxes.

I have paid property tax and solid waste management tax to Municipality (Composite amt) and have also paid Urban Land Tax and Water Tax to Municipality for FY 21-22.

Can anyone let me know what tax to be considered while calculating Net Annual Value?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 July 2022 A single bill issued by Municipality over the property, which includes water charges, is to be considered. Generally urban land tax is very nominal, which may be added to it. Solid waste management charges are not specifically included in it.

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H Thakar

H Thakar (Querist)

16 July 2022 Sir. Thanks for reverting.

But i am receiving different bill which shows as Payment of Water Supply.
Can i add the same to it??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 July 2022 Don't add any bill/s as additional supplies...