Category: Tax

Rental properties are presently subject to service tax, under certain conditions. We examine how the proposed Goods and Services Tax and the provisions for tax deduction at source, will impact one’s rental income The rental income from a real estate investment, is taxed under the head ‘Income from House property’ under the income tax laws, which is a direct tax law of the country. Properties that are let-out, are also subject to indirect taxation in the form of service tax, presently. The lessee of the property is also required to deduct…

As the law allows a person to own multiple homes and avail of multiple home loans, we look at the implications on tax exemptions on the home loan for the second house There is no restriction on the number of properties you can own. Similarly, there is no restriction on the number of houses for which you can take home loans and claim tax benefits, either under the tax laws or banking laws. However, the amount of home loan available to you for all the properties taken together, shall depend on various factors…

While a gift of house property does not involve monetary consideration, it needs to be registered and taxes should be paid in certain cases Gifting is an act, through which a person voluntarily transfers certain rights in an asset to another person, without any consideration. Gifting of house property has a certain income tax and stamp duty implications. Legal requirements for the gift of property As per the Transfer of Property Act, the transfer of a house property under a gift has to be effected by a registered instrument/document, signed by…

Properties can be transferred to someone you love, without any consideration, by way of a gift or through a will. We examine the pros and cons of each method Transfer of property by way of gift If you wish to transfer property, so as to make the donee enjoy the property immediately, this can be done by way of a gift. You can gift a self-acquired property to anyone, as long as you are competent to contract, as per the provisions of the Indian Contract Act. Any person who is of…

What are the taxes applicable on commercial properties that are used for the owner’s business, or if it is let out or sold? We examine the implications, in each case Property has been one of the oldest investment avenues in India, which existed before the advent of various financial products like direct equity and mutual funds. People who invest in commercial properties, do so either for their own use or for the purpose of letting it out. Taxation of let out commercial property Rentals received from any property owned by you,…

When you buy a home, there are several taxes that the purchaser has to pay. While stamp duty and registration are one-time charges, the property tax is a recurring charge that the owner has to pay every year. How do you calculate property tax The owner of a property is liable to pay the tax levied by the local body (for example, the municipality) and such a tax is called the property tax. This tax may vary from one location to another and there are various other factors that determine the amount…