What are the various taxes applicable if i recieve 4.8L pa as rent for my shop which i have rented?



I am a senior citizen, and have a shop, which i have given to another buisnessman for rent of 40k per month i.e. 4.8L rupees. What are the various applicable taxes?

What are the various taxes applicable if i recieve 4.8L pa as rent for my shop which i have rented?
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2 Replies to “What are the various taxes applicable if i recieve 4.8L pa as rent for my shop which i have rented?”

  1. Rents payable to you will be after TDS by the Lessor.
    You will have to calculate the gross rent with other incomes and plan your tax payments based on Gross Income less eligible deductions & TDS effected.
    A CA will give you the best solution if you place all the facts before him for evaluations.
    Invest your income in Pension Scheme, Medical Insurances, PPF and that will reduce the tax liability.
    Here again your CA will be the best choice to guide you. Ofcourse he will charge you for the services rendered but that will relieve you from all tensions when tax matters are entrusted to his care including filing of annual returns.
    It is presumed that you have a PAN and that you are a Tax Assesse.


  2. You need to pay Municipal Taxes and income tax on rent. That is all. For your satisfaction, I am giving you a tax calculation on your rental income. I am treating that you are paying Rs.20,000 as municipal tax. Seniour citizen means you should be more 65 years old.

    DETAILS FOR RENTAL INCOME:

    480,000 = Rent received during financial year
    020,000 = LESS: Municipal Taxes Paid.
    ————-
    460,000 = Balance income after Municipal taxes
    138,000 = LESS: 30% Deduction for repairs. (Even if you do not spend)
    ————-
    322,000 = Balance after Municipal taxes & 30% Dedu.
    000,000 = LESS: Interest Paid on house loans.
    ————-
    322,000 = Net Income from house peoperty
    =======

    Tax Calcu. for Sen.Citizen -Tax free Amt. Rs.195000

    322,000 = Rental Income as per above rent calculation
    000,000 = LESS: Deductions U/Chapter IV-A (80C Etc.,)
    ————-
    322,000 = Gross Total income (Regular)
    =======
    000,000 = TAX @ 0% Income Exempt from Tax on 195,000
    000,000 = Tax @10% between 1.1 to 1.5 lakhs on 000,000
    011,000 = Tax @20% between 1.5 to 2.5 Lakhs on055,000
    021,600 = Tax @30% on > 2.5 lakhs on Rs.072,000
    ————-
    032,600 = Tax Payable on rental income Rs.322,000
    000,978 = ADD: Education cess @ 3% on tax. 32,600
    ————-
    033,578 = Net Total Tax Payable.
    =======

    ***
    If you invest 1 lakh in tax savings instruments u/s 80C, then your tax will be reduced to a great extent. I am giving your tax calculation treating that you have invested 1 lakh in tax savings investments.

    Tax Calcu. for Sen.Citizen -Tax free Amt. Rs.195000

    322,000 = Rental Income as per above
    100,000 = LESS: Deductions U/Chapter IV-A (80C Etc.,)
    ————-
    222,000 = Gross Total income (Regular)
    =======
    000,000 = TAX @ 0% Income Exempt from Tax on 195,000
    000,000 = Tax @10% between 1.1 to 1.5 lakhs on 000,000
    005,400 = Tax @20% between 1.5 to 2.5 Lakhs on027,000
    000,000 = Tax @30% on > 2.5 lakhs on Rs. 000,000
    ————-
    005,400 = Tax Payable on Rs. 222,000
    000,162 = ADD: Education cess @ 3% on tax Rs.5,400
    ————-
    005,562 = Net Total Tax Payable.
    =======

    More details about Tax savings investments u/s 80C

    http://www.rediff.com/getahead/2005/dec/26tax.htm





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