I have rented out my 2nd property (a flat) and I am showing this as income while filing returns. How can I claim deduction against municipal tax on the rented flat? With the change in tenant, I got the flat painted, can I claim deduction on the painting job?
Alka Lamba, Gurugram
If you, and not the tenant is paying the municipal tax and you have a receipt for the same, the same is deductable from the rental amount while calculating the income from house property for the rented out property. You should mention the paid tax when filing returns and claim the tax deduction against the paid municipal taxes. In case of painting your house, you cannot claim a deduction for the cost incurred on maintaining the house. However, if you took a loan to repair or remodel your flat, the painting job could be considered as renovation expenses. In such a case the interest payable on this loan will be allowed as a deduction. However, just the cost of painting the house is not deductable.
