Making commercial use of a residential property

Possessing an office space is a wonderful approach for pros to increase their business. Nevertheless, you may utilise your residential property for business reasons only if your society’s administration and regulatory regulations allow it. It is worth noting that certain states have more permissive legislation that enables professionals such as physicians and attorneys to utilise up to 30% of their residential property for business activities.

Is there a legislation in India that governs the usage of residential property?

The Zoning Law in India, enacted by the local municipal government or authority, governs the use of land throughout cities. The usage of land in a certain region is defined by zoning regulations. The law attempts to divide residential areas from business districts in place to protect society from the detrimental effects of commercial activity while still facilitating the growth of business sectors.

What exactly does the law say?

Services provided by resident advocates, attorneys, physicians, and accountants are among the permitted commercial activities in any residential area, according to the legislation. If your state enables you to utilise a piece of your land for commercial purposes, you must secure various licences, along with the agreement of the society and the local municipal office, due to the nature of your business.

Consider that working from home is frequently tolerated in certain sections of the country. An action related to the transfer of commodities from residential premises, on the other hand, is considered commercial and is normally not permitted unless appropriate licences are secured.

Once a property is designated as commercial, it is handled as such for all reasons, including taxation. Conversely, the following aspects are not authorised within residential premises, according to Supreme Court orders:

  • Banquet Room
  • Any action involving the use of hazardous or flammable chemicals
  • Automobile repair shops
  • Construction supplies, booze, and junk food are all sold at retail stores.

“If you want to utilise a residential property for commercial purposes in Mumbai, you must get a No-Objection Certificate (NOC) from the relevant society.” You can use up to 220 square feet of business space in a residential flat. Although back-office work is normally tolerated by society, “functions requiring the use of property such as depots, warehouses, refrigerated storage, and labs are not tolerated,” says Amit Desai, Owner of PropInvest Realty.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.


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