Muncipal tax provision

Deduction is permissible in respect of property taxes subject to the folowing two conditions:

1. It should be borne by the assessee.

2. It should be actulally paid during the previous year.

                If property taxes levied by a local authority for a particular previous year are not paid during that year, no deduction shall be allowed in the computation of house property income for that year. However if in a later year the entire arrears are paid, then actual amount paid during such later year shall be fully allowed as deduction in the computation of house property income for that later year.

Hence the bottomline is.. The tax is reqd to be actually paid in order to get any deduction under income from HP.

[The fact that a provision has\ has not  been made is not relevant... and wont get us any deduction....]

Munipal Tax is allowed only on Payment.