In case of let-out house property is municipal tax is paid on Net Municipal Value in case the property is situated in Delhi,Mumbai,Chennai or Delhi i.e. in metropolitan cities?
Suppose in the question it has been given that the municipal tax for a house in Delhi is 10% and Gross Municipal Value for that particular house is Rs 100000. So in that case will I have to first convert the Gross Municipal Value to Net Municipal Value(100000*90%=90000) and then apply the rate 10% on 90000? Or I will apply the 10% rate on Gross Municipal Value i.e. on Rs 100000?
CAclubindia
