Crucial Tax Tips To Commercial Property Investors


Most Indians prefer investing in commercial property because of high return on investment (ROI). Investing in commercial properties has become quite popular these days but when you make such an investment, it is important for you to know about the different tax details.

If you are investing in a commercial property for the first time, then it is all the more essential for you to go through the list given below to understand the tax specifics better:

  • The first and the most important thing that a commercial property investor should know is the type of holding a structure that they are planning to use. This can have a very significant impact on the tax. For example, if you are making use of the self-managed super funds to buy a commercial property, then the tax that you have to pay will be much lesser. The depreciation report of the quantity surveyor will provide you with the list of those assets that will help you in maximizing your deductions.
  • When you already own a commercial property and are planning to sell it, then the capital gain date is the exchange date and not the settlement date. So, you can always wait till the 1st of July in order to postpone the tax payment to the next year. However, if you have tenants in the commercial property, then you do not have to pay GST at the time of either selling or buying it.
  • Most of the commercial property owners are of the belief that claiming deductions on the capital works is an ongoing process.

However, the actual fact is that when you sell your property, you have to reduce the base cost of the property by the amount that you have already claimed before when you were the owner of that particular commercial property.

Investing in a commercial property after knowing about these important tax details will definitely be a good idea. If you plan to invest, then investing in an office space in Mohali or other places where you find a good option will certainly be a smart decision because these properties ensure very good returns in the future. Also, there are a number of commercial properties available for sale by the reputed builders in Mohali and other premium locations.


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