CAM, or Common Area Maintenance, refers to fees charged to tenants in commercial real estate for the upkeep of shared spaces, such as lobbies, parking lots, and landscaping. These costs are typically allocated based on the tenant's proportionate share of the property. Tax, in this context, may refer to property taxes assessed on the real estate, which can also be passed on to tenants as part of their lease agreements. Together, CAM and taxes are important considerations for tenants when evaluating the total cost of occupancy in a commercial property.
Common Area Maintenance (CAM) charges are typically treated as part of the rent for tax deduction purposes under the Income Tax Act in India. When making payments for CAM charges, Tax Deducted at Source (TDS) is applicable if the total payment exceeds the prescribed threshold. The applicable TDS rate for CAM charges generally aligns with the rate for rent, which is currently 10% for residents. It's essential for landlords to issue TDS certificates to tenants for the deducted amount for their tax records.
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Common Area Maintenance (CAM) charges are typically treated as part of the rent for tax deduction purposes under the Income Tax Act in India. When making payments for CAM charges, Tax Deducted at Source (TDS) is applicable if the total payment exceeds the prescribed threshold. The applicable TDS rate for CAM charges generally aligns with the rate for rent, which is currently 10% for residents. It's essential for landlords to issue TDS certificates to tenants for the deducted amount for their tax records.
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