Municipality Tax in House Property

This query is : Resolved

Ankit Varma (Querist)
Follow

24 September 2009 If a person pays the municipality tax in advance can it be deducted from the Gross Annual value

or only the tax paid for the current year can be deducted?

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
Follow

24 September 2009 It is the tax paid and not a liability on accrual basis. As such, deduction on account of tax paid ia allowable.

Kapil Arora

Kapil Arora (Expert)
Follow

24 September 2009 As per Section 23 of Income Tax Act, 1961 amount paid in a previous year is allowable to be deducted to arrive GAV so whether it is off currentyear or last year or coming year

Upgrade to CAclubindia Pro. Subscribe Now!

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
Follow

24 September 2009 I have a different view, muncipal tax tax for last year and current year shall only be allowed, ADVANCE MUNICIPAL TAX PAID IS NOT ALLOWED

Message likes : 1 times