Rental Income Tax Filing

Overview

Rent isn't taxed on what you receive — it's taxed on what's left after deductions

Rental income is taxed under Income from House Property: start with the Gross Annual Value, deduct municipal taxes actually paid, then a flat 30% standard deduction, then home loan interest under Section 24(b) — regardless of your actual repair spend. Owning a second property brings its own rules on deemed let-out valuation, and a tenant paying more than ₹50,000 a month must deduct TDS under Section 194-IB, which needs to be reconciled with your return.

Standard deduction and loan interest, both applied

The 30% standard deduction is claimed automatically, and home loan interest is verified against your loan statement — not estimated.

Correct treatment for multiple properties

Self-occupied, let-out, and deemed let-out properties are each valued under their own rule, including the two-property self-occupied concession.

TDS credit reconciled, not lost

Section 194-IB TDS deducted by your tenant is matched against your Form 26AS/AIS so the credit isn't missed at filing.

Try it now

See your estimated tax in seconds

A quick estimate to get you started — for a precise number tailored to your situation, book a consultation

Tax regime

Annual income (₹)

₹

₹0₹25L₹50L+

Estimated tax payable

₹ 97,500

Effective rate 6.5% · new regime on ₹15,00,000

Taxable income₹ 14,25,000

Tax as per slabs₹ 93,750

Health & education cess (4%)+₹ 3,750

The New Regime saves you ₹ 1,59,900 compared to the Old Regime.

Illustrative estimate for FY 2025-26 — assumes salaried income eligible for the standard deduction, and includes the Section 87A rebate and 4% cess. Surcharge is applied at a flat rate without its own marginal relief. Does not account for other deductions or individual circumstances. Book a consultation for an exact figure.

Simple, from start to finish

How it works

Book a consultation

Tell us how many properties you rent out, and whether there's a home loan involved.

Share your rent and loan documents

Rent agreements, receipts, municipal tax proof, and loan interest certificates, shared securely.

We compute your house property income

Gross Annual Value, deductions, and loan interest worked out property by property, and cross-checked against your Form 26AS/AIS.

File & confirm

We file your return with the computation attached and send you the acknowledgement.

Typically 3–4 days once documents are received

Questions

Frequently asked

01How much of my rental income is actually taxable?

Start with the Gross Annual Value (usually the rent received), subtract municipal taxes paid during the year, then subtract a flat 30% standard deduction, and finally home loan interest under Section 24(b). What remains is added to your total income at slab rate.

02Is there a cap on home loan interest deduction?

For a self-occupied property, interest deduction is capped at ₹2 lakh a year. For a let-out property, there's no cap on the interest claimed, but the overall loss from house property that can be set off against other income in a year is capped at ₹2 lakh, with the balance carried forward.

03I own two houses — is the second one automatically taxed?

Up to two properties can now be treated as self-occupied with nil value, provided conditions are met. Any additional properties are treated as deemed let-out and taxed on notional rental value even if actually vacant.

04Does my tenant need to deduct TDS on the rent they pay me?

Yes — under Section 194-IB, an individual or HUF tenant paying rent above ₹50,000 a month (and not otherwise liable for tax audit) must deduct TDS, currently at 2%, and this should show up in your Form 26AS/AIS for you to claim as credit.

05Why book a consultation instead of filing this myself?

Co-ownership splits, the ₹2 lakh loss set-off cap, deemed let-out valuation on a second property, and TDS credit matching are all places where a manual filing commonly goes wrong — and a mismatch between your return and your tenant's TDS filing is a common trigger for notices.

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