Income Tax

Income Tax on Rental Income

“Home isn’t where you’re from, it’s where you find light when all grows dark.”

― Pierce Brown, from the book : Golden Son

The Annual Taxable Value of the property is calculated by deducting municipal taxes paid, and deduction u/s 24 from the actual rent received/receivable/deemed rent.

Under section 24, two deductions are available:

  • Standard deduction of 30% of the value arrived after deducting taxes from the rent and municipal taxes.
  • Interest on the home loan
  • Deemed owner is the person who is not legally registered as the owner of the property, but receiving the rental income.
  • When the rent from the property also includes the rent of assets like the sofa, refrigerator, air conditioner, etc. Then, that is called composite rent.

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