Tax on rental income

Hi Rajesh,

Your monthly rental income is Rs. 80,000 which means your annual income is 9,60,000/- which exceeds basic exemption limit to an individual. Also rental income of this nature is liable to TDS @ 10% u/s 194I.

However at the time of filling your return you would be eligible for Deduction u/s 80C for the repayment of principal installment upto Rs. 100,000/- & for interest portion. Apart from this you would be allowed Standard Deduction of 30% of your rental receipt.

All you have to do is to wait till flling of your return, if your calculated tax lower than TDS deducted refund will be available to you.

Rgds

The income whihc you receive from your property will be taxablae under the head income from house property.  the income would be calculated as follows. You have not provided teh amounts for Municipal Taxes & Interset portion of your EMI on home loan. the same would get deducted as per below.

The Income from house property would get added to yoru total taxable income and tax will be calculated accordingly.  The TDS that the company makes on the rent for that you would get the credit from your total tax liability. for the principal portion of your EMi, the same would be eligible for deduction u/s 80C.

Thanks for the replies guys.. Well heres the break down of my loan :

Monthly EMI = 54355

So if I get 72,000 in Rent / month , I pay 10,250 + 53,555 for maintenance and home loan respectively. That leaves me with 8,195. I'm not sure what the Municipal Taxes Paid are. Thanks again.