One of the hardest things is to understand the taxes. It’s not easy for a common man to understand all of them. India has various different taxes being levied upon. One of the taxes that people do not know is the property tax. The word is not new but their rules and regulations are new to lot of people. Paying all the taxes is important. Property is considered as one of the most important source of income and hence, a tax is levied on that. By property it may include anything from buildings, flats, shops as well as lands. According to the Income Tax Act, income from the properties is regarded as one of the heads of the income. The amount of the tax is being calculated on the value of the property that is being taxed.
In the first budget of our finance minister Arun Jaitley, some changes were proposed to the income tax laws related to the capital gains from the property sale. He put a cap on the amount of tax-saving by way of investing in long-term capital gains from the property sale in the specified bonds which are also called as capital gains bonds. He also specified that the investment should be made in one residential house property located in India for availing long-term capital gains benefit. As the current income-tax rule says, a long-term capital gain on the sale of property is held for three years and attracts 20 percent tax. Exemptions can be granted only under certain conditions. Here are some changes that are proposed in the income tax laws: 1. Property The property tax in India is being levied on real estate’s which include the buildings or the lands attached to those buildings. The plots which are vacant without any adjoining building are not liable to be taxed under this head. It will be taxed as income from other sources. Following are some of the properties which are liable to be taxed under the property tax in India:
2. Calculating property tax in India The property tax in India is mostly calculated on the basis of the ‘Annual value’. The annual values for the self-occupied and let out properties can vary. 3. Annual value for the let out properties In case you are having some let out property, the annual value will be equal to the maximum of the following
There are some deductions which are allowed on the interest on the loan to build, buy or repair the property. A deduction of 30% of the net value is allowed for repair and maintenance of the properties. Knowing all the taxes is not everyone’s cup of tea. You can always refer to the internet or some tax consultants for knowing the various taxes that we are paying. Consult Sairung Developers and know more about the various taxes over real estate’s from their in house experts.
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AuthorSairung Developers, backed firmly by a sound financial base and trust, started its activities in 1979. Since its inception, the Sairung Group has spearheaded revolution in many areas like construction, development of gated communities and assured deliveries of developed farm and bungalow plots, NA plots, ensuring high returns year after year. Archives
December 2016
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