Service tax on renting out a residential property

Narayan Subramaniam (Business) (38 Points)

11 March 2013  

 

Hello,
 
I would like to know the various tax implications involved in renting out a residential property to an individual or a company?
 
a) Service tax - As I understand, since the property is a residential property, service tax is not applicable as it will be used for residential purpose only.
 
There was an article a year back that expected: High house rents may draw service tax https://www.business-standard.com/article/economy-policy/high-house-rents-may-draw-service-tax-112030400057_1.html
 
What is the current stand as of today because the residential property in question would draw high rent?
 
2. Income Tax - I understand Income tax would be applicable as per tax bracket.
 
Thanks and please let me know.