How Income from House Property is Calculated

Taxable income from house property is calculated using the following steps:

Step 1 – Determine Gross Annual Value (GAV)

This is usually the total rent received from the property during the year.

Step 2 – Deduct Municipal Taxes

Municipal taxes paid to the local authority are allowed as deductions.

Step 3 – Calculate Net Annual Value (NAV)

Net Annual Value =

Gross Annual Value – Municipal Taxes

Step 4 – Standard Deduction (30%)

A standard deduction of 30% of Net Annual Value is allowed for maintenance and repairs.

Step 5 – Deduct Home Loan Interest

Interest paid on housing loans is deductible under Section 24 of the Income Tax Act.

For self-occupied property, the deduction limit is typically ₹2,00,000 per year.

Example Calculation

Let us understand with an example.

Annual Rental Income = ₹6,00,000
Municipal Taxes Paid = ₹20,000
Home Loan Interest = ₹1,50,000

Step 1
Gross Annual Value = ₹6,00,000

Step 2
Net Annual Value = ₹6,00,000 – ₹20,000
= ₹5,80,000

Step 3
Standard Deduction (30%) = ₹1,74,000

Step 4
Taxable Income

₹5,80,000 – ₹1,74,000 – ₹1,50,000

Taxable Income = ₹2,56,000

This is the amount that will be included in your total taxable income.

Who Should Use This Calculator

This calculator is useful for:

• landlords earning rental income
• property investors
• individuals with housing loans
• taxpayers filing income tax returns

It helps estimate the taxable income from property before filing your return.

Need Help with Property Tax Calculation?

If you need assistance with income tax on rental income, capital gains on property sale, or tax planning, you can consult CA Shiwali.

CA Shiwali helps taxpayers with:

• Income Tax Return Filing
• Capital Gains Tax on Property
• NRI Property Taxation
• Tax Notices and Compliance

📞 Call / WhatsApp: 9266032777
🌐 Website: cashiwali.com

Frequently Asked Questions

Is rental income taxable in India?

Yes. Rental income is taxable under the head Income from House Property under the Income Tax Act.

What deduction is allowed on rental income?

A standard deduction of 30% of Net Annual Value is allowed for maintenance and repairs.

Can home loan interest be deducted?

Yes. Interest paid on housing loans can be deducted under Section 24 of the Income Tax Act.

Is income from self-occupied property taxable?

Self-occupied property generally has nil annual value, but home loan interest deduction may still be claimed subject to limits.

More Resources:

• Income Tax Calculator (Old vs New Regime)
• Section 80C Deduction Calculator
• Capital Gains Property Calculator
• Advance Tax Calculator

Services Offered by CA Shiwali

CA Shiwali provides a range of taxation and advisory services, including:

• Income Tax Return Filing for individuals and businesses
• Capital Gains Tax on Property Sale
• Tax Planning and Deductions Advisory
• NRI Property Taxation Services
• Lower TDS Certificate for NRI Property Sale
• Income Tax Notice Response and Representation
• Rental Income and House Property Taxation

These services help taxpayers remain compliant with the latest tax regulations while optimizing their tax liability.

Need Help with Rental Income Tax or Property Taxation?

If you need assistance with calculating rental income tax, filing income tax returns, or understanding property taxation rules, you can consult CA Shiwali for professional guidance.

📞 Call / WhatsApp: 9266032777
🌐 Website: cashiwali.com

CA Shiwali assists clients across India with income tax planning, capital gains tax matters, and property taxation issues.

Last Updated: 2026