House property

The municipal taxes etc levied by the local authority are to be deducted from the Gross Annual Value to arrive at the Net Annual Value. However, this deduction is allowed only if both the following conditions are satisfied:-

1. The municipal taxes have been borne by the owner.
2. These have actually been paid during the financial year.

Therefore deduction for municipal taxes etc levied by any local authority is allowed if they are borne and actually paid by the owner. It must be noted that the taxes are allowed as a deduction only in the financial year in which they are paid.

Municipal taxes which are due but have not been paid are not allowed as a deduction. Municipal taxes etc due but not paid shall not be allowed as a deduction. However, municipal taxes etc paid during a financial year are allowed even if they relate to past years or future years.

The municipal taxes etc levied by the local authority are to be deducted from the Gross Annual Value to arrive at the Net Annual Value. However, this deduction is allowed only if both the following conditions are satisfied:-

1. The municipal taxes have been borne by the owner.
2. These have actually been paid during the financial year.

Therefore deduction for municipal taxes etc levied by any local authority is allowed if they are borne and actually paid by the owner. It must be noted that the taxes are allowed as a deduction only in the financial year in which they are paid.

Municipal taxes which are due but have not been paid are not allowed as a deduction. Municipal taxes etc due but not paid shall not be allowed as a deduction. However, municipal taxes etc paid during a financial year are allowed even if they relate to past years or future years.

Municipal taxes are to be deducted on cash basis.

=> If Paid during the year, deductible even if pertaining to previous or next years

=> If Not paid during the year, not deductible even of pertaining to current year