• Rental income from property

I am a salaried person (with a CTC of 45 lakhs) and staying on rent in Virar. I have properties in Kharghar and given the same on rent. Rent received in 63,000 Rs. What is my tax liability on the same? I want to understand if there are options available to save tax on rental income.
Asked 2 years ago in Income Tax from Mumbai, Andhra Pradesh
Dear Sir,

Yeah, you can save some taxes. 

Please let us know, how many house properies do you have? And where is your workplace.

Please feel free to revert in case of any doubts

Abhishek Dugar
CA, Mumbai
2944 Answers
125 Consultations

5.0 on 5.0

Rental Income earned  will fall under Income from house property, If you have taken any home loan on this property, Interest on same you can claim. under section 24, irrespective of interest amount. You will also get standard deduction @30% on Net annual value of Rental income.
Additionally you can also claim HRA as you are staying on rent house
Vishakha Agarwal
CA, Bangalore
438 Answers
57 Consultations

5.0 on 5.0

Tax liability will be calculated on full details of salary (i.e. basic, d.a, h.r.a. traveling allowances, etc) and deduction u/sec 80C, 80G etc. 
Kumar Akash Singh
CA, Patna
4 Answers

3.5 on 5.0

Hello Sir,

In your case, the rental income shall be charged to tax under the head Income from House Property. You shall get a flat deduction of 30% and the balance shall be subject to 30% tax.

So 63000 less 30% is 44100/- and tax on it is Rs.13627/-.

You can save taxes on Rental Income if you have a Housing loan on the same property.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Rohit R Sharma
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

The rent received by you has to be shown under the head Income from House Property, Against the same you can claim 30% Standard Deduction and Municipal Taxes paid as deduction. If your house property is in joint name or co-ownership. You could take the rent in the name of your co-owner or joint owner to save taxes.

Ria Nagpal
CA, Ahmedabad
46 Answers
3 Consultations

5.0 on 5.0

Rental Income earned  will be Taxable under the head Income from house property Under Section 22
If you have taken any home loan on this property, Interest on same will be allowed as deduction without any limit. under section 24(b). In house property income flat 30% standard deduction is allowed irrespective of actual expenditure form Net annual value.

The manner of computation of House property income is as follows:

Gross Annual Value                                   63000
  (-)  Municipal Tax Paid                                 0
 Net Annual Value                                        63000
Deduction u/s 24
a) Standard Deduction                                18900
b) Interest on Borrowed Cap                            0

Income Chargeable under the head HP   44100

Tax @ 30% 44100*30%*1.03= 13627

You cal also claim deduction of HRA. Further you can claim deduction under chapter -VIA
 PPF, LIC, Mutual Fund,Tution Fee,Mediclaim, Home loan Principal Repayment,
For any clarification feel free to contact us.

Shiv Kumar Agarwal
CA, Delhi
258 Answers
58 Consultations

5.0 on 5.0

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