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Tax Implications for Property Managed by Nobroker

Hello everyone,

I’m seeking some clarity on the tax implications related to a rental property that is currently managed under NoBroker.

The monthly rent is ₹60,000, and the security deposit collected is ₹1,80,000. In this setup, the tenant pays the rent and deposit directly. NoBroker deducts a 6% fee from the monthly rent, and the remaining amount is transferred to my account.

Here are a few questions I had:

For tax filing purposes, should the income declared be the gross rent paid by the tenant (₹60,000/month), or just the net amount received after NoBroker’s 6% deduction?

Is NoBroker’s 6% management fee considered an allowable deduction under 'Income from House Property'?

Regarding the security deposit – while it’s refundable, it may not always be returned in full. Deductions can be made for end-of-tenancy painting charges, property damages, or if the tenant vacates early without notice.

In such cases, are these deductions from the deposit taxable, or do they fall under a different classification for income/tax reporting?

I want to ensure I’m reporting the correct figures and handling the tax aspects appropriately. Any insights or experiences shared would be greatly appreciated.

Thank you in advance!

submitted by /u/Calm_Firefighter2020
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source https://www.reddit.com/r/RealEstate/comments/1k0e52l/tax_implications_for_property_managed_by_nobroker/
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