While you are converting your house into a PG, you are altering the accommodation from residential to commercial.
As you will be drawing the income instead of renting the services, it will be treated as a commercial property that requires compliance of certain legal formalities and norms.
Conversion of the property from residential to commercial not only alters its profile but also impacts your monthly bills and expenses.
While letting out the property to multiple guests will improve your earnings, your liabilities will also increase as now all the facilities such as electricity, gas, and water would be chargeable at a commercial rate.
Besides, the property tax levied would also be according to a commercial property rather than residential property.
The TDS for rental amount is essential.
You may have to see if your annual turnover or income is coming within the GST limits, then it would be pertinent to charge GST accordingly.
first thing first, if you convert your house into a PG, it will be treated as a commercial property and the owners will have to pay all the bills including electricity, water and taxes at commercial rates