31 August 2008
author : Pavan Faliya Posted On : 8/31/2008 6:15:36 PM Gross Annual Value is Rs.36000 Municipal Taxes paid Rs.50000 Net Annual Value Rs.(14000)
Query is whether 30% Deduction of Sec.24(a) Should be taken on negative NAV ?
We have practice of taking deduction of Sec.24(b) of interest on Loan even if there is no NAV.
Sec. 24(a) does not say that we can't take deduction from negative NAV.
Please answer.
Answer: In This Case Deduction Of Muncipal Taxes Will Be Available Upto Amt of GAV.
01 September 2008
No, deduction will not be allowed because there is no concept of NEGATIVE value of NAV in Act and in your question NAV is not negative but NAV is ZERO or NIL
05 September 2008
If Gross Annual Value is less due to vacancy of property than it is ok. Other wise you must take fair rental value or municiple value to arrive at Gross Annual Value.
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