This discussion explains how to calculate income from a let-out property under a lease agreement. It suggests considering 2.5% to 3% of the capital value as income, and for refundable lump sum lease deposits, 8% of the deposit amount can be treated as annual rent. The advice also clarifies that this can be considered alongside TDS on salary calculations and during Income Tax Return (ITR) filing.
08 January 2024
2.5% to 3% of capital value can be considered as income from house property. In case of refundable lumpsum lease deposit 8% of the amount may be considered as annual rent.