Response

If the zoning rules and the housing society management rules allow it, you can use or rent your residential property for commercial activity. However, states have different sets of rules on the conversion of residential property to commercial property.

Some states allow up to 30 percent area of a house to be put to commercial use by professionals such as doctors, lawyers, and chartered accountants, but others do not.
In case your state allows this, it is necessary to get approval from the housing society before the conversion of residential property to commercial property. Depending on the nature of the business, it may also be necessary to obtain permission from the local municipal authority for the conversion of a flat into a commercial establishment.

Once a property is marked as commercial property, it would be treated as a commercial property for all purposes, which includes paying more as property tax.
There are three things that you have to keep in mind before converting a part of your house into an office:
Get a shop and establishment license from the municipal authority concerned.

Before you apply, be clear on the area you would need and the kind of business you plan to carry out.
The civic body would levy commercial charges on the property and water and power supply, depending upon the area, the property size, and the nature of the business activity.

It is to be noted that certain professions have been exempted from this.

Reference: section 11 apartment ownership act. Certain works prohibited.ÐÐNo apartment owner shall do any work
which would be prejudicial to the soundness or safety of the property or
reduce the value thereof or impair any easement or hereditament or shall add
any material structure or excavate any additional basement or cellar without
first obtaining the consent of all the other apartment owners.
Explanation.ÐÐIn this section, reference to apartment owners shall be
construed, in relation to a multi-storeyed building in any block, pockets or
other designated area, the apartment owners of the concerned
multi-storeyed building in such block, pocket or other designated area.

202100202-20210042-19985

LAWAYZ-2023-178