Income from House Property

Any residential or commercial property that you own will be taxed. Even if your piece of real estate is not let out, it will be considered earning rental income and you will need to pay tax on it. The income tax authorities tax you on the capacity of the real estate (not let out) to earn income and not the actual rent. This is called the property’s Annual Value and is the higher of the fair rental value, rent received or municipal rent.
•A standard deduction of 30 per cent of the Annual Value is permitted
•Deduction on property tax paid on the rented property
•Any interest paid against outstanding loans taken against the property