Question

municipal taxes to be deducted from gav should be:

a)paid by the tenent during the previous year
b) paid by the owner during the previous year
c) accrued during the previous year
d) paid by the tenent during the assessment year​

Answer 1

b) paid by the owner Durning the previous year

Answer 2

Option “B” is correct i.e., paid by the owner during the previous year.

• Municipal taxes to be deducted from gross annual value should be paid by the owner during the previous year.

• GAV is the sum of the market value of all assets within a fund  

• As taxes have been paid from the owner so no deduction of municipal tax will be allowed in this case.

Hope it helped...