Municipal tax in case of let-out house property

In case of let-out house property is  municipal tax is paid on Net Municipal Value in case the property is situated in Delhi,Mumbai,Chennai or Delhi i.e. in metropolitan cities?

Suppose in the question it has been given that the municipal tax for a house in Delhi is 10% and Gross Municipal Value for that particular house is Rs 100000. So in that case will I have to first convert the Gross Municipal Value to Net Municipal Value(100000*90%=90000) and then apply the rate 10% on 90000? Or I will apply the 10% rate on Gross Municipal Value i.e. on Rs 100000?

Replies (10)
muncipal tax is deducted from gross annual value..

 my dear................. apply 10% of grosss municipal value which is 100000 and municipal tax 10000

Actually I heard that in case of metropolitan cities municipal tax is calculated of Net Municiapal Value. and Relation is Net Municipal value=90% of Gross Municiapal value in case of metropolitan citites. so i am confused. plz help me out

Apply 10% on the gross municipal value

yaar ...when u r doing tax ...dont believe in people saying...just open ur buk ..u will find ur answer...aisa kuch bhi nahi hai...municipal tax is always calculated on gav...

Municipal Tax is calculated on Gross Value.

Originally posted by : arpita

Municipal Tax is calculated on Gross Value.

Thanks everybod for clearing my doubt

In metro cities (i.e. Chennai, Delhi, Kolkata, Mumbai), municipal authorities charge tax on Net Municipal Value after giving a deduction for repairs (being 10% of Gross Municipal value) and an allowance for service taxes (like sewerage tax, water tax etc. as a % of Net Municipal value). Hence, the relation between Gross Municipal Value and Net Municipal Value can be concluded as under –

In metro cities NMV = GMV – 10% of GMV – Sewerage/Water Tax etc. (as a % of NMV)

In non-metro cities GMV = NMV

Suppose Gross Municipal Value 10000 for a Kolkata House

Tax rate 15%

Municipal tax will be (10000× 90%× 15%)= 1350 rupees

It is authentic rule.

U should write properly because in taxation your spelling also matter

So don't use word like book buk it's is a book and also calculate properly because it is not 1350 it is 13500 

 

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