Rental Income Tax Calculator India – FY 2025–26
If you own a rented property in India, the income you earn is taxable under a specific head called "Income from House Property." The calculation might sound complicated at first—you have a gross rent amount, then deductions for property taxes, maintenance costs, and loan interest—but the process is actually straightforward once you know the rules.
This rental income tax calculator helps you calculate your exact tax liability based on FY 2025–26 rules. It applies the 30% standard deduction automatically, accounts for actual taxes you've paid, and shows you a clear breakdown of how much of your rental income is actually taxable. No guesswork. Just numbers.
Many landlords find rental income taxation confusing because there are multiple deductions available—a fixed 30% standard deduction, or the option to claim actual documented expenses (whichever is higher). There's also the distinction between rent you actually receive and the legal concept of "annual value." Add to that surcharge rules, TDS deductions, and different treatment for self-occupied versus rental properties, and it's easy to see why this area trips people up.
Understanding your rental income tax shouldn't require a trip to a chartered accountant. This calculator shows exactly what's taxable and what isn't. You see the impact of each deduction in real time. You understand why surcharge applies at certain income levels. And most importantly, you get a clear, professional breakdown that you can use when filing your ITR or discussing with your tax advisor.
Coverage
This rental income tax calculator is designed for:
What's NOT covered here:
Key Deductions & Benefits Explained
The 30% standard deduction under Section 24(a) is one of the most important benefits for landlords. Here's what you need to know:
What is the 30% standard deduction? It's a fixed deduction of 30% of your Net Annual Value (NAV) that's automatically available to all property owners earning rental income. It represents a notional cost for maintenance, repairs, upkeep, and management of the property—without requiring any documentation or receipts.
How does it work? The deduction is calculated on your Net Annual Value (NAV), which is the gross rent minus any municipal taxes or property taxes you've actually paid. So if you receive ₹10 lakhs as rent but paid ₹50,000 in municipal tax, your NAV is ₹9,50,000, and the 30% deduction is on ₹9,50,000 = ₹2,85,000.
Does it apply in the new tax regime? Yes, absolutely. The 30% standard deduction is one of the few deductions available under the new tax regime. Unlike most other deductions (like 80C, 80D) which are only available under the old tax regime, Section 24(a) applies to everyone.
Can I claim more than 30%? You can, but only if you have actual documented expenses exceeding 30%. This means you need receipts, bills, or bank statements showing expenses like maintenance, repairs, insurance, utilities, etc. However, if you don't have such documentation, stick with the 30% standard deduction—it's automatic and doesn't require proof.
Is it mandatory to take this deduction? Practically yes. The tax law allows you to deduct either 30% of NAV or your actual expenses, whichever is higher. Since you don't need documentation for the 30% option, most landlords use it unless they have very high actual expenses.
Does it apply to commercial properties? No. This calculation is for residential properties. Commercial property rentals have different rules.
Tax Rates Explained Clearly
For FY 2025–26, rental income from house property is taxed using the New Tax Regime income tax slabs. Here's how it works:
1. Your rental income is added to your total income (salary, interest, etc.) 2. This total income is then taxed at slab rates 3. There's no special flat rate for rental income—it's treated as regular income 4. Tax is calculated progressively based on tax slabs 5. Surcharge applies if your total income exceeds ₹50 lakhs 6. Health & Education Cess of 4% applies on top
This is different from some other income types (like capital gains) which have their own special rates.
Income Tax Slabs (New Regime FY 2025-26)
| Income Range | Tax Rate | ||
| --- | --- | ||
| ₹0 – ₹4,00,000 | 0% | ||
| ₹4,00,000 – ₹8,00,000 | 5% | ||
| ₹8,00,000 – ₹12,00,000 | 10% | ||
| ₹12,00,000 – ₹16,00,000 | 15% | ||
| ₹16,00,000 – ₹20,00,000 | 20% | ||
| ₹20,00,000 – ₹24,00,000 | 25% | ||
| ₹24,00,000 and above | 30% |
Example: If your taxable rental income is ₹10 lakhs (₹10,00,000), you'd pay: • ₹0 on first ₹4 lakhs • 5% on next ₹4 lakhs = ₹20,000 • 10% on last ₹2 lakhs = ₹20,000 • Base tax = ₹40,000
Surcharge and Cess Explained
Surcharge is an additional tax on top of your income tax. It applies when your total income (including rental income) exceeds certain thresholds:
| Total Income Range | Surcharge Rate | ||
| --- | --- | ||
| ₹0 – ₹50 lakhs | No surcharge | ||
| ₹50 lakhs – ₹1 crore | 10% on income tax | ||
| ₹1 crore – ₹2 crores | 15% on income tax | ||
| ₹2 crores – ₹5 crores | 25% on income tax | ||
| ₹5 crores and above | 37% on income tax |
Health & Education Cess: This is a 4% tax on (income tax + surcharge). It applies to everyone, regardless of income level.
Example 1: If your income tax is ₹40,000 and surcharge is ₹0 (because total income < ₹50L): • Health & Education Cess = 4% of ₹40,000 = ₹1,600 • Total tax = ₹40,000 + ₹1,600 = ₹41,600
Example 2: If your income tax is ₹10 lakhs with total income in ₹50L – ₹1Cr range (10% surcharge): • Surcharge = 10% of ₹10,00,000 = ₹1,00,000 • Health & Education Cess = 4% of (₹10,00,000 + ₹1,00,000) = ₹4,40,000 • Total tax = ₹10,00,000 + ₹1,00,000 + ₹4,40,000 = ₹15,40,000
Example Calculation
Let's calculate tax on ₹12 lakhs (₹12,00,000) annual rental income with no expenses.
Step 1: Gross Annual Rent Rent received = ₹12,00,000
Step 2: Less Municipal Tax (if paid) Let's assume no municipal tax paid = ₹0 Net Annual Value (NAV) = ₹12,00,000
Step 3: Less 30% Standard Deduction (Section 24(a)) 30% of ₹12,00,000 = ₹3,60,000 Amount after standard deduction = ₹12,00,000 – ₹3,60,000 = ₹8,40,000
Step 4: Less Home Loan Interest (Section 24(b), if any) Let's assume no home loan interest = ₹0 Taxable Rental Income = ₹8,40,000
Step 5: Calculate Income Tax (New Regime Slabs) • ₹0 to ₹4,00,000 @ 0% = ₹0 • ₹4,00,000 to ₹8,00,000 @ 5% = ₹20,000 • ₹8,00,000 to ₹8,40,000 @ 10% = ₹4,000 • Base Tax = ₹24,000
Step 6: Apply Surcharge Since total income (₹8,40,000) is less than ₹50 lakhs, surcharge = ₹0
Step 7: Calculate Health & Education Cess 4% on (₹24,000 + ₹0) = ₹960
Step 8: Final Tax Liability • Income Tax = ₹24,000 • Surcharge = ₹0 • Cess = ₹960 • TOTAL TAX = ₹24,960
Net Income After Tax = ₹12,00,000 – ₹24,960 = ₹11,75,040
Disclaimer
This calculator provides an estimate based on income-tax rules applicable for FY 2025–26 under the New Tax Regime. It is designed for educational purposes and to help you understand how rental income taxation works in India.
Important: Actual tax liability may vary depending on individual circumstances, such as:
This calculator is not a substitute for professional tax advice. For complex tax situations, unusual income sources, or if you're unsure about any aspect of your return, please consult a qualified tax professional, Chartered Accountant (CA), or tax advisor. They can review your complete financial picture and provide personalized guidance.
Frequently Asked Questions
Is the 30% standard deduction allowed under the new tax regime in FY 2025–26?+
Yes. The 30% standard deduction under Section 24(a) is available under the new tax regime for FY 2025–26. This is actually one of the few deductions that works in both the old and new regimes. You don't need receipts or documentation—it's automatic. You simply deduct 30% of your Net Annual Value (NAV) from rental income.
What is Net Annual Value (NAV)? Is it the same as rent received?+
No. NAV is the rent you received minus any municipal taxes or property taxes you actually paid. So if you collect ₹12 lakhs in rent but paid ₹50,000 in property tax, your NAV is ₹11,50,000. The 30% standard deduction is then calculated on this NAV. The calculator handles this automatically.
Can I deduct home loan interest even if I'm paying EMI on a rental property?+
Yes, the entire interest portion of your loan EMI is deductible under Section 24(b), with no limit. This is different from self-occupied properties, where interest is capped at ₹2 lakhs per year. However, only interest is deductible, not principal. You'll find interest details in your loan statement or get it from your bank.
What happens if my actual expenses (repairs, maintenance, etc.) exceed 30%?+
You can claim the higher amount instead of 30%. But here's the catch: you'll need documentation—repair bills, maintenance receipts, insurance bills, etc. The tax department can ask for proof. If you don't have documentation, the 30% standard deduction is your safest option.
How is rental income different from capital gains when I sell the property later?+
Completely different. Rental income is what you earn annually from rent—this calculator handles it. Capital gains is the profit when you sell the property (selling price minus purchase price). Capital gains has special rates and holding period rules (short-term vs. long-term). Rental income is added to your total income; capital gains is taxed separately. They're unrelated.
If I have a home loan, do I claim interest against my salary or rental income?+
It depends on the property. For a rental property loan, interest is claimed against the rental income under Section 24(b). For a self-occupied property loan, interest is claimed as a separate deduction capped at ₹2 lakhs. For a second self-occupied property, you can't claim interest. Make sure to link interest to the correct property in your ITR filing.
Do I need to file ITR-1, ITR-2, or ITR-4 if I have rental income?+
It depends on your income composition. ITR-1 is for salaried individuals with rental income (and no business income). ITR-2 is for individuals with capital gains or multiple income sources. ITR-4 is for self-employed individuals with rental income. Check the ITR guide for your specific situation, or consult your tax advisor.
How much can rental income be before I have to file ITR?+
You must file ITR for all rental income, regardless of the amount. There's no threshold that exempts rental income from filing. Even ₹1,000 in rental income requires you to file ITR if your gross total income exceeds the basic exemption limit (₹2.5 lakhs for individuals below 60 years under new regime).
What happens if the tenant deducts TDS (Tax Deducted at Source)?+
If a tenant pays rent above ₹50,000 annually to you, they may deduct TDS at 10% and remit it to the government. This TDS amount is credited to your tax account. When you file ITR, this TDS is adjusted against your final tax liability, meaning you may get a refund if TDS exceeds your tax, or pay the remaining balance if your tax exceeds TDS.