I am planning to invest in a property as co-owner (fractional property for which all co-owners are forming a Limited Liability Partnership (LLP)) for which I receive monthly rent. The rents received, I understand from the property management, will be taxed at 21.63% under LLP. However, as I am investing only about Rs 20 lacs, the rental income I receive in a financial year does not exceed individual tax exemption limit of Rs 2.5 lacs. As I do not have any other income (or is insignificant), my tax liability is zero. But, since 21.63% tax is already deducted from the rent received every month can I get a refund of this when I file my annual tax returns. Thank you in advance for your advice.
Jan. 05, 2018