Ask upto 3 free GST queries and get trusted CA advice with CAclubindia Pro. Subscribe Now!

Deduction of municipal taxes against rent income

375 views 3 replies

Mohan

Audit Assisstant & Accounts Manager

489 Points Joined December 2009

Hello everybody,

Could anybody please guide on whether payment of municipal taxes are deductible from the rent derived from letting terrace of a building in a co-operative housing society for erection of mobile tower? If yes, then whether whole or proportionate amount is deductible? How to decide such proportion? if not, then why?

Thanks in advance

Replies (3)

Manoj Mehta

Head Of Department (Accounts & Finance)

1479 Points Joined March 2009

Dear Mohan yes municipal taxes will be allowed in this case. You can take proportion of it say, if taxes is 1000 paid on house property and building is of 4floor then divide the amount and take 250 as municipal taxes for terrace. I hope answer is clear. Regards

Mohan

Audit Assisstant & Accounts Manager

489 Points Joined December 2009

Thanks for reply, but is there any supporting case law/judicial pronouncement for this? Because someone has advised that such deduction is not allowable in this case.