n NISM Certifications
X NISM Series X
Medium

Which of the following are deductible when calculating the Net Annual Value (NAV) of house property?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Municipal Taxes paid

    Correct answer

  2. B

    Municipal Taxes accrued during the year

  3. C

    Interest on loan for construction

  4. D

    All A, B, and C

Why this is the answer

Municipal taxes paid during the financial year are deductible; accrued taxes are not, and interest on loans is deductible under a different section during income computation.

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