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.

Click on image to enlarge

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s