Taxable Property
Sunday, March 20, 2011
> You are required to pay tax on rental income from the second house even if it is lying vacant.
> If a person owns more than one house and it is vacant, its value is added while calculating the owner's wealth.
> A 1% wealth tax is payable on the amount exceeding Rs 30 lakh.
> Commercial property is not included while calculating the wealth of a person.
> The interest paid on a loan taken to purchase commercial property is also eligible for tax deduction.
> Commercial space usually fetches a higher rent than residential property. It is also possible to take a loan against this rental income.
> The rental income from commercial property is eligible for 30% standard deduction as in the case of residential property.
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