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