A Guide to Taxation and Home Renting

50 %
50 %
Information about A Guide to Taxation and Home Renting

Published on July 13, 2016

Author: estherstella9

Source: authorstream.com

Slide1: A Guide to Taxation and Home Renting Introduction : Introduction People who have their own home and are living in it or have even rented it , out they end up grappling with the different taxation norms on that property. If you are also struggling with taxation, this ppt should help you understand the different taxes that are applicable and how to deal with them. Slide3: Taxes on property According to the rules whenever you earn something you are liable to pay some portion of the income as tax. There are two types of income from the property that can attract tax : First one is rental income which is generated from the rent . The other is capital gains tax. In this ppt we deal with the rental income tax as it is the one which property owners have to be concerned with. The capital gains tax comes into play only when the property is sold. Slide4: Basis for calculating rental income Property income is maybe the only income that is charged to tax on a notional basis. This charge is not based on the receipt of any income per se, but is on the inherent potential of the residential property to generate income . This means that even if the property is not let out – you are liable to pay tax on it. However, this is not applicable for the first property that one buys. From the second property onwards – even if the property is under lock and key a notional value of rent is attached to the property which is taxable . Slide5: Calculating rental income – deductions available The rental income is therefore the rent received or the notional rent attached to a property . From this income the following deductions are available: Actual municipal/ civic taxes paid . Interest paid on loan/ finance taken to buy the property. There is no cap on this deduction. The entire interest paid is allowed. However this can be taken into consideration after the owner takes possession of the property. 30% standard deduction . Slide6: Other points to note This income is then taxed at the tax rate - depending on the tax slab rate applicable to the home owner – 10%, 20% or 30% along with the cess/surchages applicable . The income can also be classified in different ways like income from a residential property and so on. But if you give away the property on rent to a business then it will be charged as the income from the business. Slide7: Read the full article on : http://www.pinclick.com/blog/a-guide-to-taxation-and-home-renting/. If you are looking for flats for rent in Bangalore without brokerage, log onto www.pinclick.com to explore our wide range of apartments. 

Add a comment

Related presentations

Related pages

A Guide to Taxation and Home Renting on Vimeo

A perfect guide to understanding the taxation laws that govern rental income from residential properties in India.
Read more

CAB Advice Guide - Renting a Home - Citizens Advice

Overview and content list for renting a home.
Read more

Renting a Home | CMHC

Renting a Home. If you are a tenant, a landlord or property manager, ... An Introduction to Renting in Canada A guide to the rental process, ...
Read more

Landlord Advice - Understanding Rental tax / Landlord tax

Understanding taxation of rental property ... Understanding taxation; Student guide to renting; ... Home Ideas; Schools;
Read more

Financial responsibilities if you rent out a property ...

Financial responsibilities if you rent out a property. ... Read our guide Buy-to-let mortgages. ... Buying a home; Renting and letting;
Read more

Rightmove – Guide to Letting

Rightmove's guide to Letting ... not a home. Get some great tips ... Understanding taxation; Student guide to renting; First time buyers guide;
Read more

Property rental guides | PrimeLocation

Home Advice Property rental guides . Property rental guides . ... Getting everything moved into a new home is very stressful and always takes longer than ...
Read more