Ideally, or from Income Tax or Housing Society perspective, Who should pay Maintenance for Rental Apartment ? Owner or Tenant? and Why? If Owner pays maintenance (rs 4000/month), then taking rent of 20,000 per month, actual income is 16,000/month, but Income Tax calculates 20,000 per month as income.
Pay Maintenance for Rental Apartment? Owner or Tenant?
I don’t think maintenance should be part of rent, it has to be paid by resident ( in this case, the tenant) to the society for upkeep/maintenance, similar to how the resident maintains her/his home. Income is only the rent part. Maintenance is not considered part of rent or house rent allowance. Technically rental should pay maintenance ,so owner will give tax only on rental income.
Income tax is not deducted automatically from rental income.. manually u have to fill income tax return ..so there u have to deduct all maintenance expenditure, pay income tax and maintain all receipts and records. In Mumbai & its surrounding areas, the owner pays the maintenance irrespective if the flat is vacant or rented. The rental amount that is quotes is inclusive of the maintenance charges.
The money you pay to owner is their rental income. The money can be divided like how ever you want, rent + maintenance+ etc. And the money they get as rental income they have to pay tax. There is no provision in the income tax Act to deduct maintenance charges from rental income. Apart from deduction of property taxes, income tax allows 30% deduction for taking care of all related expenses. It does not make any difference for tax calculations who pays the maintenance charges.
Who should pay Maintenance for Rental Apartment? Owner or Tenant?
The question of who should pay for maintenance in a rental apartment is one that is often debated by landlords and tenants. There are pros and cons to both sides of the argument, and ultimately it is up to the landlord and tenant to decide who will pay for maintenance.
– Who should pay maintenance for rental apartment? Owner or tenant?
The owner of the rental apartment is responsible for paying for any maintenance that needs to be done on the property. This includes things like fixing any damage that has been done to the property, as well as paying for any routine cleaning or repairs that need to be done. The tenant is not responsible for paying for any of these things, and should not be expected to do so.
– The pros and cons of each option
There are pros and cons to both the owner and the tenant paying for maintenance on a rental apartment. If the owner pays, then the tenant may be more likely to take better care of the unit since they are not directly paying for repairs. On the other hand, if the tenant pays, then the owner may be more likely to keep up with regular maintenance since they are not directly paying for repairs. In the end, it is up to the landlord and tenant to decide who will pay for maintenance on the rental apartment.
– Why maintenance is important for rental apartments
Maintenance is important for rental apartments for a number of reasons. First, it helps to keep the property in good condition and can prevent small problems from becoming bigger, more expensive ones. Second, it can help to improve the appearance of the property, making it more attractive to potential tenants. Finally, it can help to keep the value of the property up, which benefits both the owner and the tenant.
– How to decide who should pay for maintenance
The first step is to check your state law. Some states require landlords to pay for all repairs and maintenance, while others allow tenants to be responsible for some or all repairs and maintenance. If your state law is silent on the issue, then you will need to check your lease agreement. The lease agreement may require the landlord to pay for all repairs and maintenance, or it may allow the tenant to be responsible for some or all repairs and maintenance.
If your state law or lease agreement does not specify who is responsible for repairs and maintenance, then you will need to decide who is going to pay for repairs and maintenance. One option is to have the tenant pay for all repairs and maintenance. Another option is to have the landlord pay for all repairs and maintenance. You will need to decide what is best for your situation.
House owner gets 30% standard deduction on the net value (rent received/receivable – municipality tax – unrealized rent) of the house property while calculating tax. That is, tax is paid on net value – std deduction. Ideally, this amount should be spent by the owner on maintenance and repair of the house.
Your income will be 20000 pm and u will get flat 30% standard deduction on this, whether u pay or not, property tax, maintenance charges and all(govt doesn’t bother about it)So ur taxable income will be 20k-6k=14k pm .