During the previous year 2019-20 municipal taxes levied were ₹ 10,000, but the assessee has paid ₹ 5,000. In this case, amount allowed to be deducted is ₹ 5,000. In the next year, municipality has levied taxes of ₹ 25,000 but the assessee has paid ₹ 40,000 which includes ₹ 5,000 for the earlier year and ₹ 10,000 for the subsequent year. In this case, amount allowed to be deducted in previous year 2020-21 shall be:
A. ₹ 25,000
B. ₹ 40,000
C. ₹ 30,000
D. ₹ 10,000
Answer:B
During the previous year 2019-20 municipal taxes levied were ₹ 10,000, but the assessee has paid ₹ 5,000. In this case, amount allowed to be deducted is ₹ 5,000. In the next year, municipality has levied taxes of ₹ 25,000 but the assessee has paid ₹ 40,000 which includes ₹ 5,000 for the earlier year and ₹ 10,000 for the subsequent year. In this case, amount allowed to be deducted in previous year 2020-21 shall be:
A. ₹ 25,000 B. ₹ 40,000 C. ₹ 30,000 D. ₹ 10,000