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NAV negative

Yami Soni (145 Points)

24 July 2020

can NAV be negative in any situation!!!?

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6 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 24 July 2020

Ma'aam, You are asking about NAV of which ? Mutual fund or Property or Shares and security??
can you elobrate you query.

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Yami Soni (145 Points)
Replied 24 July 2020

House property!..
net annual value

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 24 July 2020

In calculation of income under head Income from house property,
NAV can be negative only in one case if you paid municipal tax/ property tax more than your rent Income.

Shivam RC (Student) (23683 Points)
Replied 24 July 2020

Yes Ma'am, the NAV can be negative...
Incase of Self Occupied Property, the NAV is "Nil".
And if the Expenses allowed ( Municipal Tax, Water Tax etc ) exceeds the Rent received, then there might be a situation of NEGATIVE NAV.

Yami Soni (145 Points)
Replied 25 July 2020

I m getting confusion ..
in case Municipal taxes paid are greater than GAV than..
maximum deduction for municipal taxes will subject to maximum of GAV or..
we can deduct it directly and ans will NAV negative..
in such cases
NAV will negative or Nil

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 25 July 2020

Yes, Municipal tax is a deduction which can reduce the GAV to come up NAV upto a maximum of GAV amount. In other words, NAV can be zero but CAN'T BE NEGATIVE. Only Income from House Property can be negative due to Interest on Housing Loan.