"Property Rental Value is all set to decrease". I told this to one of the readers of this blog Mrs. B during our interaction. She is planning to buy a property in Gurgaon where the property prices already corrected by 25% post demonetization. She is of the opinion that now it is a good time to invest in the property. Maybe she is right in case she is planning to buy the property for self-use but not for investment purpose. The reason being, if you are buying the property for investment then you also need to check the property rental value. If correction of 25% in property price is accompanied ... Read More
Is Your Property Income a Business Income from Tax Perspective
The calculation of income from house property or property income is very simple and standard. I shared a dedicated post on this subject i.e. How to calculate income from House Property. While answering a query on the open forum, the readers share their queries in a summarized form. Therefore, all the details are not mentioned in a query. Please note that property income can be treated as a business income, depending on your main business. Recently one of the regular readers of this blog Mr. Rajesh Sharma posted a similar query. He took retirement under VRS at the age of 48 from a PSU and ... Read More
House Property Income – 10 Facts You Are Not Aware of
House Property Income is one of the most discussed and debated topics on this blog. There are a lot of misconceptions or myths related to House Property Income. In this ball game, most of the times the tax payer end up paying a higher tax. Therefore, i thought of sharing a post to clarify the most common doubts and misconceptions among the taxpayers. As we are moving towards the end of financial year, i receive maximum queries on tax related topics in last quarter of FY. Another peak season is near the last date of filing of income tax return. The income from house property has a major impact ... Read More
NRI Property Investment – 11 Important Guidelines to Follow
NRI Property Investment is the most discussed but least understood topic. The reason being, it is perceived to be too complex. The rules and regulations governing NRI Property Investment are different. In this post, a reference to NRI includes PIO (Person of Indian Origin) and OCI (Overseas Citizenship of India) until unless specified. Till date, i have observed two key reasons for NRI Property Investment. The primary reason is NRI's would like to settle in India after retirement. Secondly, they still feel safe and secure to invest their hard earned money in India compared to the country of ... Read More
Pay Rent to Your Parents and Save Tax
Not many people are aware that if they are staying in their parents house then they can pay rent to their parents and save tax. I briefly covered this point in my post Tax Benefits on HRA - House Rent Allowance. Its a comprehensive topic as it involve lot of ifs and buts. As it help to save tax, it doesn't mean we can blindly follow this rule related to HRA. It require financial impact study i.e. whether paying rent to parents will actually help to save tax or not on net basis. Sometimes due to ignorance of finance team of employer, HRA exemption is rejected specially in case rent is paid to ... Read More
How to earn higher Rent from your House?
Real Estate is one of the most popular investment avenue in India. Income from Rent is backbone of Retirement Planning in India. When a property is bought for investment purpose, the key concern of any investor is Rental yield from the property i.e. how much rent, he can fetch from the property. It is very logical and genuine concern. Though Rental yield of Commercial Property is very high compared to Residential Property which i highlighted in my post Commercial Property vs Residential Property. Due to high cost and risk associated with the commercial property, investors prefer Residential ... Read More