alleryStart learning →Local taxes are deducted for annual value in the year they are:
AFirst assessed
BBudgeted ahead
CMerely accrued
DActually paid
Answer & Solution
Correct answer: D. Actually paid
The proviso allows municipal taxes only in the previous year they are actually paid, regardless of when the liability arose.
Keep practising Income from House Property
Browse all Income from House Property questions for CA Inter, or explore more Taxation topics.
Related questions
Two co-owners share a let house equally; annual value Rs 4,00,000, no loan. Each one's incLet-out house: annual value Rs 2,00,000, interest Rs 80,000. Income?House let at Rs 1,50,000 a year against fair rent Rs 1,20,000, no taxes. Income?The 30 per cent deduction under section 24(a) is taken on:Section 24(b) interest applies to a house acquired, built, repaired, renewed or:Section 22 taxes a building together with its appurtenant:Deemed owner of house property is defined in section:Taxation of co-owned buildings with definite shares is under section: