How to change residential tax to commercial tax?

Question

How to change residential tax to commercial tax?

09-Mar-2023 (In Tax Law)

I am Chartered accountant by profession and presently staying in a rented house. I wanted to open my office on the ground floor of the house for which my landlord has agreed. But I wanted to know that do I have to change the residential tax to commercial tax, if I open my office?

Answers (1)

Answer #1

Adv. Chikirsha Mohanty

Delhi | 200+ Answers

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LawRato LawRato · Accepted Answer · 2017-03-09T19:26:34+05:30

As per Indian Law, all doctors, lawyers and CAs can use 30% of their residential premises for consultations. This would not be regarded as using property for commercial purposes. But if you utilise more that 30% of your residence as an office, you will have to pay commercial water charges and property tax for the same.

If you convert your property to a commercial one, the amount of tax will be as per the rule framed by the local Corporation. Once the property is marked as commercial property, it will be treated as commercial property for the purpose of collecting tax as well.

A non-nuisance professional activity running by doctors, lawyers, consultant, architect, chartered accountant, property consultants, government guides may also fall in the same category.