sivaram (Asst Mgr-Taxation) (6918 Points)
03 February 2010I have two small queries to be resolved
1 In case of let out property the deduction allowed is property taxes paid to Municipal corporation .The Act Stresses only on Property Tax but if i pay tax to municipal on underground Drainage will that tax be considered ? can all taxes paid to Municipal Authorities can be claimed
2.Deduction on 80 C Llike Life Insurance Premia on dependent parents can be claimed ?
Amir
(Learner)
(4016 Points)
Replied 03 February 2010
Dear Sivaram,
1)Sec 23 says that the taxes levied by any local authority in respect of the property shall be deducted (irrespective of the previous year in which the liability to pay such taxes was incurred by the owner according to the method of accounting regularly employed by him) in determining the annual value of the property of that previous year in which such taxes are actually paid by him.
I think what u r talkin about cannot be said as taxes, it is a kind of charges paid to municipality & that too cannot be said as paid in respect of property , as required by Sec 23, Hence will not be allowed
2) Life insurance premium of dependent parents can be claimed by HUF & not by an Individual.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 03 February 2010
Thanks Mr Amir for giving your valuable reply
C.Balaji
(Learner)
(1867 Points)
Replied 03 February 2010
Mr.Sivaram
agree with Mr.Amir brother....
Any tax paid to the municipal (i.e. Local authority) for the property can be claimed.... It will be allowed on payment basis......
Life insurance premium of parents cannot be claimed by an Individual u/s 80C...
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