Rental Income Tax Calculator
Compute your Net Annual Value, the 30% standard deduction and Section 24(b) interest — then see the tax impact on your income, live.
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- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Income from house property — computation
Get your rental income + ITR filed by a CA
We compute house-property income correctly and claim every deduction you qualify for.
Disclaimer: Indicative estimate for a resident individual owning house property. Actual tax may vary with co-ownership, pre-construction interest, capital gains and special-rate income. Rates per Finance Act 2025.
How rental income is taxed
Rent you earn is taxed under the head Income from House Property. You do not pay tax on the full rent — the law gives you a flat 30% standard deduction and lets you subtract the interest you pay on a home loan. The result is added to your other income and taxed at your slab rate.
The 30% standard deduction & Section 24(b)
After computing Net Annual Value, two deductions bring down your taxable rent. First, a flat 30% of NAV under Section 24(a) covers repairs, maintenance and collection — you get it whether or not you actually spend the money. Second, under Section 24(b) you deduct the interest paid on a loan taken to buy, build or repair the property.
| Annual rent received | ₹6,00,000 |
| Less: Municipal taxes paid | - ₹20,000 |
| Net Annual Value (NAV) | ₹5,80,000 |
| Less: 30% standard deduction u/s 24(a) | - ₹1,74,000 |
| Less: Home loan interest u/s 24(b) | - ₹3,00,000 |
| Income from house property | ₹1,06,000 |
Old vs new regime treatment
How your property is used and which regime you pick changes what interest you can claim.
Let-out property
The full interest under Section 24(b) is allowed in both regimes. But if it creates a loss, only ₹2,00,000 can be set off against other income in a year — the balance carries forward for up to 8 years. The 30% deduction always applies.
Self-occupied — old regime
NAV is treated as nil, so there is no rental income. You may still deduct home-loan interest up to ₹2,00,000, which becomes a house-property loss reducing your other income.
Self-occupied — new regime
NAV is nil and no interest deduction is allowed for a self-occupied house. So a self-occupied property contributes nothing — neither income nor a loss — under the new regime.
Which regime wins?
If you have a big home-loan interest, the old regime often saves more because it lets you claim the loss. For let-out property both regimes allow interest, so the choice usually turns on your other deductions.
Questions people ask
Short answers on Rental Income Tax. Tap a question to open it.
01How is rental income taxed?
Gross annual value less municipal taxes actually paid gives net annual value. From that, a standard deduction of 30% is allowed for repairs and maintenance regardless of actual spending, and interest on a housing loan under section 24(b) is deducted separately.
02Is the 30% deduction available even if I spend nothing?
Yes. The 30% standard deduction under section 24(a) is a flat allowance and does not depend on actual repair expenditure. Conversely, actual expenditure above 30% cannot be claimed.
03Can I set off a loss from a let-out property?
A loss under house property can be set off against other heads up to ₹2 lakh a year, and the balance is carried forward for eight years to be set off only against house property income. Under the new regime, no set-off against other heads is allowed.
04Is TDS deducted on rent I receive?
Yes, if the tenant is a business deducting under section 194-I, or an individual paying more than ₹50,000 a month under section 194-IB. The TDS is credited against your tax liability when you file.
05How is a second house treated?
Up to two houses can be treated as self-occupied with nil annual value. Any further property is deemed to be let out and taxed on a notional rent based on its expected market rent.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.