Preface

Taxation constitutes the most important part of any transaction and transactions in immovable property are no exception. Issues arise as to taxation of income associated with the property either as capital gain or as property income or as income from other sources and availability of relief arising as a consequence to owning/transfer of immovable property.

This book is primarily directed with taxation aspects of renting of immovable property both residential as well as commercial. As a natural fallout tax issues related to lease transactions have also been taken care of. Neo- concepts like income from running and management of malls, letting out of shops in malls and income from letting out of terrace for signage, mobile tower, etc. have also been explained with available case laws.

Renting of both residential as well as commercial properties is governed by sections 22 to 27 except of course in certain circumstances where such income, in case of commercial renting, is taxed as business income or income from other sources. This aspect of taxation under section 22 to 27 has been discussed in full details transmitting entire knowledge on the subject to the readers.

One of the important stakeholder of entire eco-system of immovable properties is co-operative housing societies. Tax issues concerning co-operative housing societies have also been taken care of and both income tax and gst aspects have been discussed in detail.

Income tax law grants tax incentives to both developers and owners of properties. Developers are granted profit based deduction under section 80IBA [Earlier section 80IB(10)] in case of housing projects and cost based deduction in respect of affordable housing projects under section 35AD. Both these aspects are discussed in enough detail. Discussion under section 80IBA is supplemented with entire spectrum of case laws decided under old section 80IB(10) thus enabling a tax professional to arrive at an informed decision when posed with a query as to allowability or otherwise of deduction under section 80IBA.

So far owners of properties are concerned apart from deduction of interest on borrowed capital under section 24(b) there are other tax incentives like deduction under section 80C and 80EEA. All these aspects have been discussed in details explaining the entire law on the subject with identifying situations that come across the tax professional on a day-to-day basis.

Any book on immovable property would remain incomplete if we do not discuss the transfer aspect of it which results in capital gains. Capital gains is a vast subject and always need a separate treatise to deal with it but in this book we have discussed capital gain tax aspects relating to residential as well as commercial properties in particular.

TDS is important part of tax collection process and thus touches the taxation of immovable properties also. All TDS provsions which directly deal with immovable properties have been discussed in detail with illustrations as to their applicability.

All we can say is that we have identified issues related to taxation of incomes associated with renting of immovable property both residential and commercial renting, relief available to gains arising from transfer of immovable property, tax incentives to owners/developers of properties and discussed them in enough detail. We have also identified various TDS issues relevant to these properties and discussed them in detail supplementing the entire discussion with the help of decided case laws and apt illustrations.

GST has been introduced in the country since 1-7-2017. Various issues have arisen with regard to applicability of GST on immovable property. In order to complete the book we have included a separate mini book on GST. This book contains issues relevant to GST on immovable property encompassing acquisition, construction and renting aspects. We have discussed the most relevant issues regarding immovable properties and also discussed general provisions relevant to them.

Needless to mention that subject matter is fully updated in view of the Finance Act, 2022 and recent notifications related to GST, so far related to subject matter of book. Case law available till the matter sent for printing have also been incorporated, if found useful.

With this we present this book to our esteemed readers. We believe this book will come as a handy solution to them for problems arising with regard to immovable property related transactions in general and taxation issues arising thereto in particular. As usual we will be waiting for "readers comments" about our effort.

JODHPUR	CA. MANOJ GUPTA
26th OCTOBER, 2022	CA. SATYADEV PUROHIT