Rent

shyam lal (Querist) 20 March 2021 This query is : Resolved
Is receiving rent taxable? If yes then till which amount p.a. is exempt from taxation,lastly can one take rent in cash.

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Quick Summary

Rental income is generally taxable under the UK's Income Tax Act. While property tax and loan interest can be deducted, there are standard deductions available. Individuals can receive up to £2 lakh annually in cash, but it's advisable to consult a local tax professional for specific advice regarding your circumstances and the latest regulations.

kavksatyanarayana (Expert) 20 March 2021
The tax shall be paid on the annual income from all sources. So it is better to consult a local CA or post this query in CAclubindia. Rent may be taken in kind of cash.

K Rajasekharan (Expert) 21 March 2021
Rent from house property is taxable as "income from house property".

Property tax can be deducted from the rent.

A 30 per cent of net annual value can again be deducted as standard division.

Interest on house loan can also be deducted.

Income tax is to be paid for net income exceeding Rs 2.5 lakh.

An amount not exceeding Rs 2 lakh can be received by cash by an individual.

These are some of the tips on the taxability of rent but some other conditions are there governing it.

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