1. What is House Rent Income Tax?

House Rent Income Tax is the tax levied on income earned from renting out property in India. For Assessment Year 2025-26, it's calculated based on gross rental income minus allowable expenses, multiplied by the applicable tax rate.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Gross Rental Income — Total rental income received (INR)
• Allowable Expenses — Deductible expenses like property tax, maintenance, etc. (INR)
• Tax Rate — Applicable income tax rate (percentage)

Explanation: The calculation first determines taxable income by subtracting allowable expenses from gross income, then applies the tax rate to determine the tax liability.

3. Importance of Calculating Rental Income Tax

Details: Accurate calculation of rental income tax ensures compliance with Indian tax laws, helps in proper financial planning, and avoids penalties for underpayment of taxes.

4. Using the Calculator

Tips: Enter gross rental income in INR, allowable expenses in INR, and the applicable tax rate as a percentage. The default tax rate is set to 30% (common for individual taxpayers).

5. Frequently Asked Questions (FAQ)

Q1: What expenses are allowable against rental income?
A: Common allowable expenses include municipal taxes, interest on home loan, standard deduction (30% of net annual value), repairs and maintenance.

Q2: What is the standard tax rate for rental income?
A: For individuals, rental income is taxed as per the applicable income tax slab rates. The default 30% rate is for those in the highest tax bracket.

Q3: Is there any exemption limit for rental income?
A: No specific exemption, but basic exemption limit (₹2.5 lakh for FY 2024-25) applies to total income including rental income.

Q4: How is rental income from multiple properties taxed?
A: Income from all properties is aggregated, and expenses are deducted as per rules to compute taxable income.

Q5: When is the due date for paying tax on rental income?
A: Tax is payable as advance tax in installments or by March 31, with the income tax return due July 31 (or extended dates).