Property vs Mutual Funds (India)
Head-to-head comparison of an Indian residential property vs an equity MF investment of the same size — with rent, maintenance, vacancy, TDS, and LTCG all modeled.
Your inputs
Adjust assumptionsProperty grows 6% · Rent 2.5% · MF 12%
Head-to-head
Property numbers don't capture: tenant management from abroad, property manager fees (typically 8–10% of rent), TDS filing quarterly, repairs/legal disputes, and the sale process (buyer must deduct TDS on the full sale value; you'll need a lower-TDS certificate to reduce it). For NRI sellers, the buyer must deduct TDS on the full sale consideration — 12.5% on LTCG (holding > 24 months) or 30% on STCG. Actual tax is reconciled at filing. Lower TDS certificate (Sec 197) can reduce this.
Why this comparison matters
Property "feels" safer than equity because you can touch it, but the honest numbers frequently tell a different story once you deduct maintenance, TDS on rent (30% for NRI landlords), vacancy, transaction costs, and eventual LTCG on sale.
This tool applies the July-2024 tax rules: property LTCG at 12.5% without indexation, equity LTCG at 12.5% with a ₹1.25 lakh exemption per year, and monthly rent net of the mandatory 30% TDS if you're an NRI landlord.
Educational tool — not investment advice
Calculations are based on the assumptions you provide. Tax rules are simplified and change frequently. Verify with a qualified Chartered Accountant or tax professional before acting. Past returns do not guarantee future results. This tool does not recommend any specific investment, fund, stock, or property.