16 June 2012
Rental income is Rs. 10000 (for 1 month) while property tax is Rs. 15000 (for whole year). property is let out for 1 month only. when we are calculating income it is showing negative income. is it possible income from house property can be negative due to municipal tax. or we have to consider municipal taxes for 1 month only.
16 June 2012
Yes it can be negative,since property was let out only for a month during the year. Then you have to calculate the Annual Value according to the provision of Section 23(a).
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