Real Estate & JDA Taxation

Real estate taxation advisory covers the tax positions of the property transactions under the Income-tax Act 1961 — the taxation of the rental income from the house property under Sections 22 to 27, the capital gains on the sale under Sections 45 to 54 with the exemptions for the reinvestment in the residential property under Section 54 and the bonds under Section 54EC, the taxation of the developers and the builders under the business provisions, and the TDS on the property purchases under Section 194-IA. The real estate tax is the set of decisions that decides the cost of buying, holding and selling property.

The property's tax is decided by the nature of the holding and the timing of the transaction — the rental income computed under the house property provisions with the standard deduction of Section 24, the capital gains computed with the indexation and the holding periods, and the exemptions of Sections 54 and 54EC that defer the gains on the reinvestment. For the developers, the projects run under the business provisions with the GST already applied. Each position is a decision the structure should have planned.

The cost of an unplanned real estate tax is the tax paid that the law did not require: the gains taxed because the Section 54 reinvestment was missed, the indexation lost on the holding, the TDS not claimed, the rental deductions not taken. The real estate tax is one of the largest single tax positions most families hold, and the planning is where its cost is decided.

This service is for owners, investors and developers. We plan the acquisition and the holding structure under the Act, manage the rental income and the Section 24 deductions, compute the capital gains with the indexation and the exemptions of Sections 54 and 54EC, handle the TDS under Section 194-IA, and review the real estate positions — so the property's tax is the minimum the law allows.