Tax Categories Based on Rental Income:
- Below ₹3,00,000/year: No tax is imposed.
- ₹3,00,001 to ₹6,00,000/year: A 5% annual tax is applicable.
- ₹6,00,001 to ₹20,00,000/year: A flat tax of ₹15,000 plus 10% of the income above ₹6,00,000.
- Above ₹20,00,000/year: A flat tax of ₹1,55,000 plus 25% of the income above ₹20,00,000.
Clarifications on Multiple Properties:
- If a person owns multiple properties, all must be reported in the tax return.
- Tax calculation considers the cumulative income from all properties, not individually.
Dependents vs. Independents:
- If dependents (e.g., children) are earning income from properties, their income may be added to the head of the family’s income unless declared as independent.
- To avoid higher taxation, dependents should be declared independent when applicable.
Agricultural Property:
- Income from agricultural properties is excluded from this taxation framework.
Recommendations:
- Properly declare dependent and independent statuses in tax returns.
- Maintain transparency in reporting all properties and their respective incomes.
