How one has to treat rebate given by muncipalities for early payment of property tax for incometax purpose ?
In computing House property income we subtract the property tax actually paid and compute the taxable income.
Property tax amount claimed as deduction is to be shown after rebate or before rebate in ITR , may please be clarified .
Like Gas subsidy , rebate on property taxt payment is also tax free.
if " before rebate " we take the deduction of Mpl taxes, where do you show this rebate in ITR . Can we show this in EI ( exempted from income tax ) schedule . ?
Generally we ignore this sort of income , but in some cases the rebate works out couple of thousands which I feel to report under EI schedule .
In ITR 3 -
Schedule HP - Details of Income from House Property
a - Annual letable value or rent received or receivable (higher of the two, if let out for whole of the year, lower of the two if let out for part of the year)
b - The amount of rent which cannot be realized
c - Tax paid to local authorities
You will show the MPL Tax in --->>> "C- Tax Paid Local Authorities"
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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