Having an OC from the developer offers you a host of benefits besides making you the legal owner of your property. Besides, it also works to your advantage if you plan to sell your home in future. “A buyer must ideally get an OC from the concerned builder once construction is complete and ready to be occupied,”. “Given that during property registration OC is not a mandatory document and has...
The OC is a validation of the developer’s commitment to the safety and security of the occupants. Before a developer hands over the keys of the apartment to a home-buyer or an office premise to the occupants, He/She is required to obtain the OC of the project from the certifying authorities. For a builder today, it has become a badge of honour because it reflects his transparent and professional...
An Occupancy Certificate (OC) from your developer is proof of the project’s compliance to safety norms. It also certifies you as the legal owner of your property. Here’s why it is an important document for a home-buyer and developer An electronic billboard lights up the entrance of an under-construction luxury residential project announcing the countdown to the exact date that the home-buyers will...
Vastu Shastra is an important factor that weighs in the discussion for people when buying a new house for themselves.it is a centuries-old ancient text that is still relevant for millions of people, especially in the Indian subcontinent, where it originally originated from.Vastu Shastra also dictates the positioning of furniture, rooms etc in a home so that the house attracts positivity and good vibes...
Annual Value: The term 'Annual Value' refers to the amount that the property can fetch in a year by letting it out on the rent. In other words, it is a notional rent amount that the property owner could have earned if the property had been rented. Municipal Value: Municipal authorities are in charge of determining the municipal value of a property and collecting municipal taxes on it. The...
Although it is impossible to avoid paying taxes on rental income, there is a way for homeowners to reduce their tax burden. To save a significant amount towards the tax on rental income, property owners must be aware of the various deductions available when filing an income tax return. Joint property: The taxpayer can save a considerable amount of money on taxes if the property is purchased...
If the income from the property meets any of the conditions specified below, the concept of tax on rental income will not apply. If the landlord makes money by renting out his or her farmhouse.If the landlord rents out their property to the local authorities and receives money from them.If the landlord is receiving income by renting out their property to a government-approved and recognised scientific...
To do a house rent income tax calculation, the property's Gross Annual Value (GAV) is taken into consideration. However, the landlord must deduct the standard deduction, municipal taxes, and the interest paid towards the home loan (if any). Let's look at an example to see how this works in more depth. Assume you own a home and have rented it out for Rs 35,000 a month. You have paid Rs 25,000 in...
It is crucial to understand when GAV comes into play before learning how to calculate it. As per Section 22 of the Income Tax Act of 1961, landlords are liable to pay tax on the property's annual value if the conditions listed below are met. The person (taxpayer) who receives income from the property must also be the owner of the property.The term "property" refers to any land or building and not...
When filing a return for income earned from the rented property, Section 24 of the Income Tax Act allows property owners to claim two exemptions, or say two house property deductions. The details of the exemptions are outlined below. Standard deduction: A flat 30% of the deduction is allowed on the property's gross value for any repairs and maintenance. When calculating this amount, the...