House Property

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CA Sandeep Singh Rawat (Querist)
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16 June 2009 if an Assessee Residing in his own house does not pay municipal tax or some years before Previous year & in Previous year lets out the house & pays the municipal taxes of all the previus years including current year's tax. Can he claim deduction for the all municipal tax or only of current year? Please reply soon

CA.BHARAT BHUSHAN

CA.BHARAT BHUSHAN (Expert)
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16 June 2009 As the proviso of section 23 read as follows; taxes levied by local authority in respect of the property shall be deducted ( irrespective of the previous year in which the liability to pay taxes was incurred by the owner according to the method of accounting regularly employed by him) in determining the annual value of the property of that previous year in which such taxes are actually paid by him.

So, you may claim the whole amount paid of Municipal Tax from Annual Rental Value.

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