Taxes For Leasing Property

Highlighted below are a Number of Taxes payable along with General Expenses incurred for leasing the property.

1.Fringe Benefit Tax payable by the Employee in case of a Company – Lease – 20% (Tenant to Pay)

2.Service Tax – Presently only on Commercial Property – 12.36% – (Owners to Pay)

3.Property Tax on Leasing/Licensing (more in commercial property) – (Owners to Pay)

4.Stamp Duty and Registration Fees  – (Jointly shared by both the parties in most cases)

5.Income Tax  – (Owners to Pay)

6.Society Maintenance/Non – Occupancy Charges charged by the Society – (Owners to Pay)

7.Municipal Taxes on Property in General – (Owners to Pay)

8.Incidental Expenses/Consultant Fees/Lawyer Fees (owners and tenant to pay)

9.Painting / Polishing / Furniture / Maintenance (owners to pay)

10.Sundry repairs from time to time (owners to pay)

11. Interest payable @ nearly 11% to the Banks for Purchasing the property.

Souce – Sandeep Sadh CEO Mumbai Property Exchange.