Treatment of house rent received

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2012 i have only one house at chennai or elsewhere which I had let outfor rent .The rent of the house is higher then the rent I pay for the house where I stay now. I have not taken any loan for the house.While filing the IT rent how should I treat this excess rent over my rented house.
whether I can get exemption of IT for the amount of actual rent paid by me and pay only for this excess amount i collect from my house as rent.

Guest

Guest (Expert)

05 May 2012 Show the rent received as income frm HP. The rent paid by u is eligible for deuction as HRA assuming HRA is paid to u by ur employer

Querist : Anonymous

Querist : Anonymous (Querist)

17 May 2012 thanks for the reply.I am retired

Querist : Anonymous

Querist : Anonymous (Querist)

17 May 2012 thanks for the reply.I am retired treatment in this case please

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

02 August 2025 Got it — since you’re retired and receiving rent from a house you own, here’s how to treat that rental income for Income Tax purposes:

---

### 1. **Rental Income from House Property**

* The **rent received** from your house is taxable under the head **Income from House Property**.
* Since you own only **one house** let out on rent, the gross rent received will be your **Gross Annual Value (GAV)**.

---

### 2. **No Set-off for Rent Paid**

* The rent **you pay for your residence** (where you stay now) **is not allowed as a deduction** against rental income received from your house.
* The exemption related to rent paid (like HRA exemption) applies only to **salary income**, not rental income.

---

### 3. **Deductions Allowed**

From the Gross Annual Value, you can deduct:

* **Standard Deduction:** 30% of GAV (for repairs, maintenance, etc.)
* **Municipal Taxes Paid** (if any) during the year.

---

### 4. **Summary**

| Income | Rental Income received from your house (Gross Annual Value) |
| ------------------------------- | ----------------------------------------------------------- |
| Deduction 1 | Municipal taxes paid (if any) |
| Deduction 2 | 30% standard deduction on Net Annual Value |
| Amount taxable | Net Annual Value after above deductions |
| Rent you pay for your residence | Not deductible against rental income |

---

### 5. **No exemption for rent paid on your residence**

* There is **no provision** to exempt the rent you pay for your residence from the rental income you earn.
* Rent paid is only considered for **HRA exemption** if you are salaried and receiving HRA allowance.

---

If you want, I can help you calculate the taxable income from house property step-by-step. Would you like that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

R M Shekhaliya

Amit Goyal

SHRI HARIRAO

Frank

Pushkar Nagda

Subscribe Now

Treatment of house rent received

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

CA Final

Senior Executive

GST CONSULTANT

GST CONSULTANCY

Manager- Finance and Compliance