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House Property Rental Income

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PB

41 Points Posted on 23 July 2024

Hello -
Need your help!. I have tried searching online for answers, and the more I read the more confusing it gets.

I have flat that I rented out for Rs. 20,000 / month. Is the yearly rental income subject to tax or are there any exemptions?

The reason I ask, I read an article that says " rental income will be tax-free if the Gross Annual Value (GAV) is less than ₹ 2.5 lakh." Is this correct? Should I include or exclude this rental income on my tax return?
Please advice.

Thank you!

Replies (3)

Quick Summary

This discussion clarifies whether rental income from a property is subject to tax in India. The consensus is that annual rental income is indeed taxable and should be added to your total income. While there's a basic exemption limit of ₹2.5 lakh for overall income, this doesn't automatically make all rental income tax-free. Deductions for municipal taxes paid and a standard deduction of up to 30% of the annual value are available.

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 23 July 2024

1)As per the income tax Act , your yearly rental income received or receivable ( Annual value) is subject to tax .
2) you will get deduction of Municipal taxes paid for said property, during the previous year, and standerd deduction up to 30% of the Annual Value.

3) refer section 22 ,23 and 24 of the income tax act .

Sreevidhya V

335 Points Posted on 23 July 2024

Yearly rental income is subject to tax.. it has tobe added with your total income
I think 2.5 lacs must be the basic exemption limit which was referred to in the articles not for house property alone