Housing Rentals or Renting Commercial Space In India

As a licensee (tenant) you are not liable to pay out any society outgoings. The Society Outgoings in most of the buildings today is varying between Rs.2/- to Rs.4/- per sq.ft, and in select buildings which have modern amenities like club house and swimming pools etc it could be more or less depending on how the society is managed. This is the most important saving the Licensee (tenant) does apart from the fact that he gets a home which in a lot many cases can be semi furnished or furnished.

Most of the apartments which are given on leave and license for a term of 1 to 3 years can be terminated earlier by giving 1 or 2 months notice and if you find your dream home you can Terminate the lease (leave and license agreement) of the rented apartment.

If you are a salaried employee and you have taken the apartment on a personal lease then you are also entitled for a complete tax deduction. If you are taking the apartment on company lease then you are in for a "Fringe Benefit Tax" of nearly 20%. A lot of executives from Senior Banks and Corporate are given the option to go in for a personal lease as it becomes tax efficient for both parties. The property owners are now getting a little comfortable with this by taking in a deposit and monthly rent by way of Post Dated Checks to cover their backs. Payment made by individual’s licensees to property owners (licensors) is not subject to Tax Deduction at Source and this saves an upfront deduction of nearly 16.83%.

(Source: india-news.in)