Property Tax Returns

Every individual earning a monthly income in excess of Rs 5,000 is required to file an Income Tax Return on September 30, every year. The filing process is fairly simple whether you do it yourself or use the services of an accountant. Either way, you are required to fill in an Income Tax Return Form, in which you have to declare your income and assets, such as property you own
Here are some points property owners should keep in mind when filing their Income Tax Returns:
1. Individuals who own immovable property (such as a house or a plot) measuring over 250 square yards, or an apartment. measuring 2,000 square feet or more, should declare the property in their Income Tax Return. However, no tax is applicable on property owners if they are not renting out their property.
2. Owners who are renting out their property must declare their assets as well as the income derived from the property.
3. Costs incurred due to renovation or remodeling of a property can be included as an expense in the Income Tax Returns. If the amount exceeds your annual income, a tax benefit can be claimed.
Tax Rates on rental income derived from a residential property:
Gross Annual Income                           Tax Applicable
Less than Rs 150,000                            No Tax Applicable
Rs 150,000-400,000                             5% of gross amount
Rs 400,000-1,000,000                          Rs 12,500 + 7.5$ of gross amount
More than Rs 1 million                           Rs 57,500 + 10% of gross amount