What are the applicable taxes on commercial rental income? How can I lower the tax liability on this income or can part of this rent can be shown as my wife's income? The shop is in my name and I am a retired person.
— NK Thakur, Jaipur
If the commercial property is in your name, you cannot show income in your wife's name. Rental income falls under "income from house property".
There is 30 per cent standard deduction on commercial rental property which you will be entitled to. This deduction is given irrespective of whether you spend this in repair and maintenance of rented property. Hence if you earn Rs 3,00,000 from rent, you will get 30 per cent standard deduction which is Rs 90,000. Your taxable income will be Rs 2,10,000 only. This income will be added to your regular income and taxed as per the tax bracket you fall into.
Expert advice by Adil Shetty, CEO Bankbazaar.com
I want to invest in mining and power companies as a long-term portfolio. What are the prospects of the sector in long-term? Also, do you think the stocks of these companies have hit rock bottom or are they still on their way down?
— Vijay Singh, Mumbai
The mining sector has been a poor performer in the bourses in the recent times owing allegations of irregularities plaguing it.
After a crackdown on miners in rich Karnataka, the government has cast its eyes on Goa. So private mining majors like Sesa Goa have exhibited lacklustre performance in the stock exchanges arising out of uncertainties in the sector. Even public sector giants like Coal India and NMDC too have witnessed less-than-expected performances with their stocks faring unimpressively. Adding to the uncertainties, the mining reforms bill and the enhanced royalties for fresh outputs have also dampened the sentiments in the sector. If you have invested in mining stocks it is advised to hold your shares and wait for the markets to fare better.