Real estate

Renting out your apartment and living on rent?

many home owners prefer to rent out their new home and continue to live in rental accommodations, The reason behind this is areas are poorly inhabited, law and order problems. So, they prefer to rent out their properties, with minimal furnishings. Cons: If you rent out your flat and start living closer to your workplace, you may attract an income tax, if the tenant stays for more than 12 months. There is a direct financial benefit, 30 % of the net annual value is deductible For example, consider that your annual income from house property is Rs 8 lakhs. If you have paid a municipal tax of Rs 2 lakhs on the property, the net annual income will be Rs 6 lakhs. Pros: The amount left after deduction of tax from the net annual value, is your additional income. This income can be saved as a pension fund, for your post-retirement expenses.