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Expert: Javed Razack Date: 5/3/2008 Subject: property tax in mumbai
Question i have rented out my flat in mumbai for INR10000/mth.what will be the amount of property tax.i pay income tax on the income and have the lease agreement registered and have paid stamp duty.
Answer Hello Deepak,
The Municipal Laws differ from State to State. As for the rate of taxes, you may browse on the internet on the site of Municipal Corporation of Mumbai. In many States the levy of property tax is 3 and half months rent payable in two advance installments to the corporation.
As for the payment of Income tax on the rental income is concerned, it is under a different Central Act and the State levy of property tax can be taken as deduction from the annual rental income and other allowable deductions u/s 24 of the Income Tax Act and the residue is taxed at the rate prescribed.
I hope this suffice your query
All the best
Javed Razack
