Commercial vs Residential: Which investment is better for rental income?


Frequently Asked Questions

Ans 1. How is commercial property rental income taxed? In India, rental income is regarded the same as any other kind of income and is included in the taxable income bands. If the amount received as rental income exceeds Rs. 2,50,000 per year, the property owner will be required to pay rental income tax.

Ans 2. High-Tenant Properties – Typically, properties with a high number of tenants will give the best return on investment. These properties include RVs, self-storage, apartment complexes, and office spaces.

Ans 3. Commercial property investment can be a highly lucrative investment strategy. However, it also comes with risks and requires careful consideration before making an investment decision. Investing in commercial property requires knowledge, research, and a sound investment strategy.

Ans 4. Income Tax on Rental Income: Tax Free RentA person will not pay tax on rental income if Gross Annual Value (GAV) of a property is below Rs 2.5 lakh.