If you are a landlord who has given his property on rent in India, you must be well aware that you are bound to pay tax on rental income. But the good thing is that you can claim tax deductions on rental income and reduce your tax liability. Let me tell you what can you claim on a rental property here.
Before knowing what can be claimed on a rental property income, let us understand what is income from house property and tax liability on the same.
Under section 24 of Income Tax Act, any property let out and which yields rental income is taxable. The tax is decided on the basis of rental income actually received from the property or amount of rent for which the property can reasonably be expected to be let out.
What can you claim on a rental property?So coming back to your query, from what I have known the Income tax department allows up to 30% standard deduction on the gross rental income. The deduction is claimed for renovation or maintenance of the property. As a landlord, you will have to produce the proof to establish the expenses on house repair or maintenance.
Sometimes, the house owner or landlords take a home loan for repairs from banks or financial institutions for rented property, in that case too, he will be eligible to claim tax paid on loan repayment in standard deduction with a cap of 30% on gross rental income.
Read more: Is GST applicable on rental income from commercial property Is GST payable on rental income What is rental yieldYour Feedback Matters! How was this Answer?
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Authors Of The Question
What can you claim on a rental property?
Sarthak
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2 Year
2021-12-28T15:05:38+00:00 2021-12-28T15:06:08+00:00Comment
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