Those looking for a house for rent or sale often consider overly expensive agencies, forgetting that commission is one of the deductible expenses along with the rental fee. Of course, there are some conditions to consider, and we will try to talk about it here.
Regarding the commission which, by law, belongs to the agency dealing with real estate negotiation is deductible:
In the case of the purchase of the first house, the costs incurred to pay commissions due to the real estate agency may be deducted for a total of 19% and deducted by the proportion of those who claimed the expenditure for a maximum total of 1000 euros for each annuity. Also, expenses may be deducted if the property dealers in India or broker to whom he has addressed is regularly registered in the agents’ list.
The deduction will be broken down as a percentage of the co-owners of the home. For the purpose of deducting the expenses of the real estate agency incurred for the purchase of the first home, it is necessary to keep the purchase invoice and the copy of the deceased.
ABOUT THE RENT DEDUCTION:
The expenses incurred to pay the rent can be deducted by different amounts depending on the type of contract and the purpose for which the property is rented. For example, free 4 + 4 contract tenants who rent a home intended to be the main one, may deduct a different amount from those who hold a contractual rent agreement based on their income bracket.
The requirements to be entitled to the deduction of the rental allowance are the ownership of a regularly registered lease, the residence in the lease contract, the respect of the income limits identified by the various deductions. The taxpayer students or their parents who have paid the costs for the rental fees for resident students enrolled at the university in a town 100 km away from their home community and can deduct the fee up to 19% on a ‘ fee amount. Even employees who have moved abroad can enjoy some deductions.
Also, there is also to consider the position of the homeowner who earns an income from renting a property, which can, in turn, deduct the expenses. In this case, the taxation is different depending on the type of lease: a coupon agreed or free 4 + 4. Saving expense not only on taxation but others like electricity bills, water bills and rent is possible in more than one ways.
This information can be useful to anyone who has so far been undecided if you rent an apartment, proceed with buying or interacting with property dealers in India for managing all your business. Real estate agents are a bridge between the house owners and potential customers and can actually help you get the dream house at affordable rent.