What Cocoon does not do — and what you retain as the owner
This page exists for one reason: Cocoon manages your property on your behalf. You remain the owner. The distinction between what Cocoon handles and what you retain — legally, financially, and operationally — is set out below.
For the full statutory detail on income tax, TDS, GST on short-term rental income, and FEMA repatriation, read the dedicated guide at Rental Income & Tax Compliance.
Services not included in any Cocoon plan
| Category | What is excluded |
|---|---|
| Structural and civil works | Roof replacements, wall reconstruction, foundation repairs, or any structural modifications |
| Legal and eviction proceedings | Court representation, eviction proceedings, title disputes, or property litigation of any kind |
| Construction and renovation | New construction, extensions, or large-scale renovations requiring municipal permits |
| Interior design and furnishing | Interior design consultancy, furniture procurement, or carpentry beyond minor fixture adjustments identified during a visit |
| Emergency on-call response | Cocoon operates on scheduled visits and pre-approved service windows. We are not a 24/7 emergency call-out service. |
| Hospitality and live-in services | Cooking, housekeeping during active occupancy by owner, concierge services, or live-in staff of any kind |
| Out-of-warranty appliance repair | Cocoon coordinates authorised service centre referrals. We do not carry out appliance repairs directly. |
| Specialist pest remediation | Preventive treatments are included in applicable plans. Severe infestations requiring fumigation must be handled by a licensed operator — Cocoon coordinates the referral. |
| Swimming pool maintenance | Not included in standard plans. Arrangements with a certified vendor can be made at additional cost. |
| Vehicle management | Car care, vehicle servicing, or driving is outside Cocoon’s scope. |
| On-site security staffing | Cocoon does not deploy security guards or manage third-party guard services. |
| Interior painting | Wall painting beyond pre-monsoon damp-proofing is not included in standard plans. |
| Tax, legal, and financial advice | Cocoon does not provide income tax advice, GST guidance, FEMA guidance, legal advice, or financial planning. Where a CA or lawyer introduction is useful, Cocoon can facilitate — the engagement is directly between you and the professional. |
Where any excluded work is identified during a visit, Cocoon documents the finding in the visit report and recommends a course of action. No work outside the agreed scope is undertaken without your prior written approval.
What you retain as the property owner
Cocoon manages the property. You own it. The following responsibilities remain with you at all times, regardless of which Cocoon plan you are on.
Your rental income
All rental income — whether from short-term guest stays or long-term tenancies — belongs to you. Under Cocoon’s standard model, tenants pay rent directly into your designated NRO account. Cocoon coordinates the payment cycle, follows up on late payments, and reports status — but the income flows directly to you. Cocoon’s management fee is invoiced to you separately. Your rental income and Cocoon’s fees are two entirely separate financial flows.
Income tax and ITR-2 filing
Your rental income from Indian property is assessable in India regardless of where you live. Filing ITR-2, computing advance tax, and engaging a Chartered Accountant for your annual return are your obligations, not Cocoon’s. Cocoon maintains property records — tenancy periods, rent logs, maintenance records, and inspection reports — in the normal course of managing your property. Your CA can request these from Cocoon to support your filing. Cocoon does not prepare tax computations or file returns on your behalf.
TDS on rent paid to NRI owners
Under Section 393(2) of the Income-tax Act, 2025, any Indian tenant paying rent to an NRI owner is legally required to deduct 31.2% TDS on every payment and deposit it with the government. This is the tenant’s statutory obligation. Cocoon does not deduct TDS on rent payments, file Form 27Q, or issue Form 16A on anyone’s behalf. You should confirm that your tenant holds a TAN and is filing quarterly returns. Your CA can apply for a Lower TDS Certificate (Form 128 under Section 395 of the Income-tax Act, 2025) to reduce the withholding rate to reflect your actual liability. For the full detail, see Rental Income & Tax Compliance.
GST on short-term rental income
If you operate a short-term rental and your annual accommodation income crosses ₹20 lakh, GST registration and return filing are your obligations. Cocoon issues its own GST-compliant invoices for its management fee only (GSTIN: 32AAZFG7923K1ZR). GST on the accommodation income you earn from guests is your responsibility, managed through your CA. Rates effective 22 September 2025: 5% on tariffs ≤ ₹7,500/night (no ITC); 18% on tariffs > ₹7,500/night (with ITC). For full detail, see Rental Income & Tax Compliance.
FEMA, NRO account, and repatriation
NRI owners are required to credit all Indian-source rental income to an NRO account. Maintaining the correct account type and complying with FEMA repatriation rules (Forms 145 and 146 under the Income-tax Act, 2025; USD 1 million annual limit) is your responsibility. Cocoon directs all rent payments only to the NRO account you specify at onboarding. Any change to your banking details must be notified to Cocoon in writing before the next payment cycle.
Property tax, society fees, and utility bills
Property tax, building and luxury tax, housing society maintenance charges, and utility bill obligations are yours. Where Cocoon’s Elite plan includes property tax coordination, Cocoon acts as your payment agent — with your funds and your prior written approval. The liability remains with you.
Insurance
Cocoon is not a substitute for property insurance. Maintaining adequate building insurance, contents insurance, and — for rental properties — landlord liability insurance is your responsibility. Cocoon documents and reports damage found during visits. It does not carry insurance coverage for the property or its contents.
Tenancy agreements and security deposits
Under the LTR Managed Plan, Cocoon drafts the tenancy agreement and facilitates its registration through a Cocoon-assigned lawyer. The agreement is between you and the tenant. You are the landlord. Cocoon is not a party to the tenancy agreement and does not guarantee the tenant’s performance under it. The security deposit is your asset — held and reconciled by Cocoon on your behalf at exit, not absorbed into Cocoon’s accounts.
Regulatory compliance for the property
Compliance with Kerala RERA (where applicable), municipal corporation requirements, and all regulations applicable to your property as a residential or rental asset is your responsibility. For STR properties, Cocoon holds and manages the operational licences (Kerala Tourism Serviced Villa classification and Kochi Corporation D&O trade licence) as the on-ground operator — this is Cocoon’s obligation. Ensuring the property meets the classification requirements rests with you.
Need something outside standard scope?
Cocoon can connect you with trusted third-party vendors or build a Bespoke Plan around specific requirements that fall outside the standard range. Raise the requirement during your evaluation visit or contact us directly.