Commercial Property

Same acquisition-to-exit lifecycle as residential Rental Property, with three deliberate differences that matter for commercial: rent escalates in steps at each lease renewal (typically every 3 years) rather than smoothly every year; common-area-maintenance (CAM) and most operating costs are usually borne by the tenant, not the owner, so the operating-cost input here should be much lower than for a residential flat; and financing typically costs more with a larger down payment required.

Commercial rent attracts 18% GST if your total rental income exceeds ₹20L/year — you charge this to the tenant and remit it, so it doesn't directly reduce your yield, but it's a compliance obligation residential landlords don't have. Rental income is taxed at slab after the same 30% standard deduction as residential property; capital gains on sale follow the same 2-year LTCG threshold at 12.5% (or 20% with indexation if acquired before July 2024).