Taxation on Property Income

1. Income from Property is taxable under normal tax structure and deductions are allowed as expenses as per law and with certain terms including repairs and maintenance, insurance, ground rent, , legal charges, interest charges, admin and collection charges etc.
2. Gross rent upto Rs. 300,000 is exempt from tax and then slab of tax applicable.
3. Following persons are required to deduct tax as being tenants (Section 155):
   • Individual or AOP paying gross rent of Rs. 1.5 million or above in a year
   • Company
   • Non-Profit organization or charitable institution
   • Private educational institutions , hospital, clinic, maternity home, beauty parlor, boutique
   • Diplomatic mission of a foreign state
   • Federal/ provincial/ local Govt.

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