case 1: if the 1/3 portion of house is used by owner self occupied and remaining is let out.
case 2: if house is let out but vacated on dec. 2016 and after vacated the house by tenant owner used house for self occupication.
muncipal taxes paid rs. 9000 by owner.
treatment of muncipal taxes in both cases for the assesment year 2017-18.
Case1- Municipal Taxes paid for the 2/3 rd portion of the house is deductible i.e ₹6,000(9,000*2/3)...
Municipal tax for self occupied portion not eligible for deduction...
Case 2- when the house is let out for some period and self occupied for some period... then it should be considered as let out for the whole period and accordingly... Municipal Taxes paid will be fully eligible for deduction... i.e ₹9,000 in this case-2
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