Income From House Rent Calculation For Income Tax

Now you know that you cannot claim any expenses while calculating income from house property.

Income from house rent calculation for income tax. If kumar pays rs 2 000 as municipal tax his property s nav will be rs 1 98 lakh. You can claim 3 600 as rental expenses. Standard deduction 30 of nav. Tax calculation for a rented property.

The above calculator is only to enable public to have a quick and an easy access to basic tax calculation and does not purport to give correct tax calculation in all circumstances. According to the income tax act rental income of a property this could be a building and the land adjoining it is taxed under section 24 in the hands of the owner under the head income from house property. The income from house property is added included in a person s the assessee gross total income only if it satisfies three essential conditions. Here is the house property income calculator that will help you to calculate income from house property and save your tax.

Want to know how to calculate income from house property for save tax. Visit now to get more details on the economic times. Market rent of similar property in similar area fair rent. Rental income tax breakdown.

Your rental earnings are 18 000. Following expenses can be deducted from net annual value nav while calculating income from house property. As per section 24 b of income tax act in case of self occupied house you could deduct upto rs 2 lakh of home loan interest to calculate the income from house property whereas in case of let out property there is no limit on home loan interest deduction and assessee can claim entire interest on housing loan to calculate tax on rental income. 2 400 in rental income tax.

The income tax department never asks for your pin numbers. If you own property that you rent out to tenants or vacation property that you rent to others when you are not using it you may have taxable rental income. However income tax act provides deductions under section 24. Rent received by tenant from sub letting.

Rental income from property is charged to tax under the head income from house property in the hands of the owner of the property. Sometimes the owner may have to pay tax on deemed rent in case the property is not let out. The first 12 000 will be taxed at 20. As a result your taxable rental income will be.

Rental income is subject to ordinary income tax. The next 2 400 will be taxed at 40. 960 in rental income tax. Income from house property covers the rent earned from the house property which is chargeable to tax.

If a person receiving the rent is not the owner of the property then rental income is not charged to tax under the head income from house property e g.