Property Rental Income Tax Calculator Ay 2024 25

Rental Income Tax Formula:

\[ Tax = (Rental\ Income - 30\%\ Standard\ Deduction - Expenses) \times Tax\ Rate \]

Rental Income (Gross Rent):

INR

Deductible Expenses:

INR

Applicable Tax Slab:

Standard Deduction (30%):

Taxable Income:

Property Tax Payable:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is Property Rental Income Tax?

Property rental income tax is the tax levied on income earned from renting out property in India. For AY 2024-25, it's calculated after allowing a standard deduction of 30% and deducting actual expenses incurred.

2. How Does the Calculator Work?

The calculator uses the following formula:

\[ Tax = (Rental\ Income - 30\%\ Standard\ Deduction - Expenses) \times Tax\ Rate \]

Where:

\( Rental\ Income \) — Total rent received (₹)
\( 30\%\ Standard\ Deduction \) — Automatic deduction allowed by tax laws
\( Expenses \) — Actual expenses like repairs, maintenance, etc. (₹)
\( Tax\ Rate \) — Based on your income tax slab (%)

Explanation: The calculation first deducts the standard 30% allowance and any actual expenses from the gross rental income, then applies the appropriate tax rate based on your income slab.

3. Importance of Rental Income Tax Calculation

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

4. Using the Calculator

Tips: Enter your total rental income in INR, deductible expenses in INR, and select your applicable tax slab based on your total income. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What expenses can I deduct from rental income?
A: You can deduct municipal taxes, interest on home loan, repairs, maintenance, insurance premiums, and property management fees.

Q2: Is the 30% standard deduction mandatory?
A: Yes, this automatic deduction is allowed under Section 24(a) of the Income Tax Act, regardless of actual expenses.

Q3: How is the tax slab determined?
A: The slab is based on your total taxable income including rental income after deductions.

Q4: Can I claim both standard deduction and actual expenses?
A: No, the 30% standard deduction is in lieu of actual expenses. However, municipal taxes and home loan interest can be claimed separately.

Q5: When is this tax payable?
A: Advance tax installments are due on June 15, September 15, December 15, and March 15 if tax liability exceeds ₹10,000.