Rental Income Tax Calculator

Calculate tax on your rental income with eligible deductions

About Rental Income Taxation

In India, income from renting out a property is taxable under "Income from House Property." You can claim deductions for municipal taxes, a standard deduction of 30% for maintenance, and home loan interest. This calculator helps you determine your tax liability on rental income after considering all eligible deductions.

Basic Details
Property Details
Choose "Self-Occupied" if you live in the property. Choose "Deemed Let Out" for multiple properties where none are rented.
Rental Income Details
₹
Total rent received for the entire financial year
₹
Rent that couldn't be recovered despite reasonable efforts
₹
Property taxes paid to local authorities during the financial year
₹
Annual rent received minus unrealized rent and municipal taxes
For a self-occupied property, Annual Value is considered as NIL. You can only claim deduction for interest on housing loan.
Deductions
₹
30% of Annual Value automatically calculated
₹
Interest paid on home loan during the financial year
Income Tax Details
₹
Income from other sources like salary, business, etc.
Your highest applicable tax slab rate
Rental Income Tax Calculation Results
Income from House Property
  • Annual Value: ₹ 0
  • Less: Standard Deduction (30%): ₹ 0
  • Less: Interest on Housing Loan: ₹ 0
  • Net Income from House Property: ₹ 0
Tax Calculation
  • Income from House Property: ₹ 0
  • Other Income: ₹ 0
  • Total Taxable Income: ₹ 0
  • Tax on Rental Income: ₹ 0
Income Breakdown
Calculation Explanation

Annual Value = Annual Rent Received - Unrealized Rent - Municipal Taxes

For self-occupied property, Annual Value is considered NIL (zero).

  • Standard Deduction: 30% of Annual Value (fixed rate)
  • Interest on Housing Loan: Actual interest paid on home loan
  • For Self-occupied Property: Interest deduction capped at ₹2,00,000 per year

Rental income, after deductions, is added to your total income and taxed at your applicable income tax slab rate.

If Net Income from House Property is negative (loss), it can be set off against other income up to ₹2,00,000 in the same year. Any remaining loss can be carried forward for 8 assessment years.

Disclaimer: This calculator provides an estimate based on the information you provided. For precise tax planning, please consult a tax professional.

Rental Income Tax Guide & Tutorial

Understanding Rental Income Taxation

Rental income in India is taxed under the head "Income from House Property." The tax calculation involves various deductions and exemptions that can help reduce your tax liability.

Key Components
  • Annual Rental Value
  • Municipal Taxes
  • Standard Deduction (30%)
  • Interest on Housing Loan
Important Points
  • TDS implications
  • Loss set-off rules
  • Joint ownership considerations
  • Vacancy allowance
Income Calculation Method
Component Description Calculation
Annual Value Higher of Actual Rent or Fair Rent Rent Received - Unrealized Rent
Municipal Taxes Taxes paid to local authorities Deducted from Annual Value
Standard Deduction Fixed 30% of Net Annual Value 30% × (Annual Value - Municipal Taxes)
Interest on Loan Interest paid on housing loan Actual interest paid during the year
Property Categories and Tax Treatment
Let Out Property
  • Annual Value:
    • Actual rent received/receivable
    • Unrealized rent deduction
    • Municipal tax deduction
  • Deductions:
    • 30% standard deduction
    • Full interest on housing loan
    • Property tax deduction
Self-Occupied Property
  • Annual Value:
    • Considered as NIL
    • No rental income
    • No municipal tax deduction
  • Deductions:
    • Interest up to ₹2 lakhs
    • No standard deduction
    • Property tax not deductible
How to Use the Calculator
1
Enter Basic Details

Select assessment year and tax regime, specify property status (let-out/self-occupied).

2
Input Rental Details

Enter annual rent received, unrealized rent, and municipal taxes paid.

3
Add Deductions

Include standard deduction and interest on housing loan details.

4
Review Tax Calculation

Check detailed breakdown of income from house property and applicable tax.

Frequently Asked Questions

Rental income taxation involves:

  • Income Calculation:
    • Annual rental value determination
    • Municipal tax deduction
    • Standard deduction of 30%
  • Tax Application:
    • Added to total income
    • Taxed at applicable slab rates
    • TDS implications for rent > ₹50,000/month

Available deductions include:

  • Standard Deductions:
    • 30% of Net Annual Value
    • Municipal taxes paid
    • Unrealized rent
  • Interest Deductions:
    • Full interest for let-out property
    • Up to ₹2 lakhs for self-occupied
    • Pre-construction period interest

TDS on rental income:

  • For Individuals/HUF:
    • TDS @ 10% if rent > ₹50,000/month
    • PAN mandatory for landlord
    • Form 26QC filing required
  • For Businesses:
    • TDS @ 10% under section 194-I
    • No threshold limit
    • Quarterly TDS returns

Loss treatment rules:

  • Set-off Rules:
    • Can be set off against other income
    • Maximum limit of ₹2 lakhs per year
    • Excess loss can be carried forward
  • Carry Forward:
    • Up to 8 assessment years
    • Only against house property income
    • Return filing mandatory

Tax optimization strategies:

  • Deductions Maximization:
    • Claim all eligible deductions
    • Maintain proper documentation
    • Consider joint ownership
  • Timing Strategies:
    • Plan loan interest payments
    • Municipal tax payment timing
    • Advance rent considerations