Demand For Property In Mumbai

There are many people from all over India, who come to Mumbai for work and thus need a residential property. But residential property can be quite pricey. In fact according to a latest research, “Mumbai recorded the second highest annual growth of 21% in residential rental”.

So Mumbai ranks sixth in world on the list of most expensive location. Now this piece of information is sure to bring a frown on the foreheads of people planning to move to Mumbai.

People who are on a look out of residential property are surely disturbed by this immense rise of residential property prices. But there is another section of society that is also a little inconvenient and they are residential property owners.

Civic authorities of Mumbai have decided to carry out a survey on rental deals. This is done in the wake of reports of growing irregularities on the part of residential property owners in disclosing their information. They will be checking, in detail, the following points:

• Legal information provided to civic authorities regarding renting property.

• Proper rent amount is disclosed or not. Disclosure of rent amount should not be undervalued

• All papers regarding giving residential property on leave and license are complete.

• Regular property tax is paid duly.

Residential property owners have to pay 30% of rent amount. This door to door inspection is expected to help the civic authority to cough up a whopping amount as default payments.

There is also good news for rental property. CBDT has decided to give a Tax deduction at source (TDS) respite on rental property. They have also provided a circular clarifying the confusion over service tax. Tax will be deducted on “actual rent paid” and this will exclude service tax. So the payer of tax will save approximately 12% that was earlier paid as service tax. Also Income tax will be paid on the actual rent paid, excluding the service tax. This comes as a great benefit especially to leased property owners.