House Rent Income Calculator

Only New Tax Regime is supported

Income From rent

To adjust the house rent income, kindly update the gross rent received and the municipal taxes accordingly.

Gross rent received

Municipal taxes paid on rented property

Net Annual Value (rented property income)

This is standard deduction provided for house rent income.

30 % of Net Annual Value (rented property income)

Total amount of interest paid home loan for the financial year being assessed

Add the following income to your salary and other income to arrive at the final taxable income.

Total Income Of House Property

Disclaimer: This calculator offers reliable and thorough results; however, it is recommended to consult a qualified taxation professional or Chartered Accountant for assistance with income tax return filing. The official portal of the Income Tax Department also provides accurate tax calculation tools and e-filing services. You are encouraged to visit the government website for further information.

How to Calculate Taxable House Rent Income For Indian Income Tax compliance

A beautiful home

If you earn rent from a house, flat, shop, or any other property in India, the Income Tax Act classifies it under Income from House Property. Understanding how this income is calculated helps you plan better, avoid surprises, and make the most of available deductions. Let’s break it down in a simple, practical way.

Step 1: Determine the Gross Annual Value (GAV)

The Gross Annual Value is essentially the reasonable expected rent from your property. For most taxpayers, this is simply: - Actual rent received or receivable for the year However, if the municipal value or fair rent is higher, the tax rules may require using the higher figure. This is the basis on which rental income is computed.

Step 2: Subtract Municipal Taxes Paid

Municipal taxes (property tax) actually paid during the year are fully deductible from GAV. Net Annual Value (NAV) = GAV – Municipal Taxes Paid

Step 3: Apply Standard Deduction (30%)

The Income Tax Act allows a flat 30% deduction on NAV for repairs and maintenance — regardless of your actual expenses. This is automatic and requires no bills or proof.

Step 4: Deduct Home Loan Interest (Section 24)

If you have a home loan on the rented property, the entire interest amount is deductible under Section 24(b). There is no upper limit for let‑out properties.

Final Formula

Here’s the complete calculation in one place:
  • Income = (Gross Annual Value – Municipal Taxes Paid)
  • Deductions: 30% Standard Deduction + Interest on Home Loan (if any)
  • Total House property income = Income - Deductions
The resulting figure is added to your total income and taxed as per your slab.

Quick Example

Suppose:
  • Annual rent received: ₹3,60,000
  • Municipal tax paid: ₹10,000
  • Home loan interest: ₹1,20,000

Step-by-step

  • GAV = ₹3,60,000
  • NAV = ₹3,60,000 – ₹10,000 = ₹3,50,000
  • Standard deduction = 30% of ₹3,50,000 = ₹1,05,000
  • Taxable income = ₹3,50,000 – ₹1,05,000 – ₹1,20,000
  • Final taxable rental income = ₹1,25,000