1. What is Rental Income Tax?

Rental income tax is the tax levied on income earned from renting out property in India. It's calculated after deducting standard allowances (30% for maintenance) and actual expenses from the gross rental income.

2. How Does the Calculator Work?

The calculator uses the rental income tax formula:

Where:

• \( Rental\ Income \) — Total rent received (₹)
• \( Allowances \) — Standard 30% deduction for maintenance (₹)
• \( Expenses \) — Other deductible expenses like municipal taxes, interest on loan (₹)
• \( Tax\ Rate \) — Applicable income tax slab rate (%)

Explanation: The calculator first determines taxable income by subtracting allowances and expenses from gross rent, then applies the tax rate.

3. Importance of Advance Tax Payment

Details: In India, advance tax must be paid if tax liability exceeds ₹10,000 in a financial year. It's paid in installments on specified due dates to avoid interest penalties.

4. Using the Calculator

Tips: Enter gross rental income in ₹. The standard 30% allowance is auto-calculated but can be modified. Add any additional expenses and select your applicable tax rate.

5. Frequently Asked Questions (FAQ)

Q1: What's included in rental income?
A: Includes basic rent, maintenance charges (if not reimbursed), and any other payments from tenants for use of the property.

Q2: Can I claim more than 30% standard deduction?
A: Yes, if you have actual expenses higher than 30%, but you'll need proper documentation for all claims.

Q3: What expenses are deductible?
A: Municipal taxes, interest on home loan, repairs, insurance premiums, and society maintenance charges.

Q4: When are advance tax installments due?
A: Typically 15% by June 15, 45% by Sept 15, 75% by Dec 15, and 100% by March 15 of the financial year.

Q5: Is TDS applicable on rental income?
A: If annual rent exceeds ₹2.4 lakh, tenants must deduct TDS at 10% (if landlord provides PAN).