1. What is Rental Income Tax in India?

Rental income from property is taxable under "Income from House Property" in India. The taxable amount is calculated after deducting municipal taxes, standard deduction (30% of net annual value), and home loan interest (if applicable).

2. How Does the Calculator Work?

The calculator uses the following formulas:

Where:

• Gross Annual Value — Expected rent or actual rent received, whichever is higher
• Municipal Taxes — Taxes paid to local authority during the year
• Standard Deduction — Fixed 30% deduction for repairs and maintenance
• Home Loan Interest — Interest paid on loan taken for the property
• Slab Rate — Applicable income tax rate based on total income

3. Importance of Rental Income Tax Calculation

Details: Accurate calculation of rental income tax helps in proper tax planning, avoiding penalties for underpayment, and maximizing legitimate deductions.

4. Using the Calculator

Tips: Enter all values in INR. Standard deduction is typically 30% but can be adjusted if needed. Slab rate should be your applicable income tax rate.

5. Frequently Asked Questions (FAQ)

Q1: What is Gross Annual Value?
A: It's the higher of municipal valuation or actual rent received. For let-out properties, it's the actual rent received.

Q2: Can I claim full home loan interest?
A: For let-out properties, entire interest is deductible. For self-occupied, deduction is capped at ₹2 lakh.

Q3: Is standard deduction always 30%?
A: Yes, this is a fixed deduction regardless of actual expenses incurred.

Q4: How is slab rate determined?
A: Based on your total taxable income including rental income after all deductions.

Q5: Are there any other deductions available?
A: You can also deduct property insurance premiums and interest on loans taken for repairs.