Owning property in Greater Noida West or any other part of the country is among the best investment options. However, it also involves expenses and one of these is the payment of taxes. If the homeowner gives the house on rent, then tax also has to be paid on the rental income. However, many people are unaware that income tax has also to be paid on vacant property. Taxing Vacant Property, Under the ‘Income for house property’, the tax is levied keeping in mind the potential of the given property to generate income for the owner and not on the rent that is being generated from the property. Therefore, the tax is levied on people who have more than one property. In the case of self-occupied houses, no tax is imposed. This is mainly because the owner is already living in the property and therefore cannot rent it out. Thus the annual value of the property is considered to be nil. Gaur City 14th Avenue Floor Plan / Gaur Yamuna City Plots / Gaur City Center Floor Plan / Gaur Atulyam Floor Plan
Exemptions on properties that are self-occupied, If the property is self-occupied, then no tax will be levied on a notional basis. The individual can also avail deductions under Section 80C of the Income Tax Act on the registration fee, stamp duty and many other expenses that are involved in the transfer of property. So for individuals living in their home have the advantage of not paying any income tax. But, those possessing more than one property which includes only the built-up premises can determine on which property they can pay taxes. The individual can show any of his property as self-occupied under the provisions of the Income Tax Act. Those possessing more than one property should first determine the net value of all the properties that they own. Of these, the one that has the highest annual value should be chosen as self-occupied.
The best way to reduce your overall tax outgo is by becoming the joint owner of a property. This will reduce your tax burden as the number of taxpayers would increase. If you already own a property and have to buy another house or office, purchase it in the name of your spouse or any other family member. This way your tax liability would be substantially reduced. Paying income tax on vacant property is mandatory, but there are ways to reduce the overall tax outgo. By making wise choice regarding your properties and going in for joint ownership you can considerably lessen your tax burden. If you are planning to buy property for self or as an investment option you can choose the most luxurious 2 BHK flats in Gaur city, Greater Noida West. These are well-structured, spacious and worth every penny.
