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Calculation of Income from House Property

15 August 2021

I am an owner of two Houses, one is rented out and the other is self occupied.
Can I deduct Municipal Tax on self occupied house property while calculating
income from house property? Please give your clarification in this regard.

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3 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 15 August 2021

No, municipal tax should be deducted from both of the houses as per share

Ajayghosh Ts (21 Points)
Replied 15 August 2021

Your answer is not clear. Only one house is given for rent. Then how can I deduct taxes of both the houses? Since the tax of self occupied house is more, I plan to deduct the same. Is it possible?

Abhishek Purohit (52 Points)
Replied 17 August 2021

Municipal tax can be deducted only from let out property.
Municipal tax is deducted before determining the annual value, consequently in sop you cannot deduct Municipal tax since the very annual value is NIL

Municipal tax in respect of let out property can be deducted.