8 Things To Know About Taxation On Rental Property

Outlook Money

Deductions On Specific Expenses

The new tax regime provides deductions for specific expenses on a rented-out property.

Rented-Out Property

Types Of Deductions

It offers deductions on municipality tax, standard deductions under Section 24 (a), and interest on home loans under Section 24 (b).

Property Tax


Rental income on house property is taxable under the 'Income from house property' category.


Rental Income

The new tax regime allows a 30% standard deduction from the rental income to cover renovation/repair expenses.


Home Loan Interest

The new tax regime allows deductions on home loan interests on the rented-out property.

Fluctuating Interest

Self-Occupied Property

No deduction is available under Section 24 if the house property is self-occupied.

Tax deduction

Loss Of Income

Loss from a house property can only be adjusted against income from a house property, not against any other income head.

loss vs income

New v/s Old Tax Regime

Starting FY 2023-24, the new tax regime is the default regime.

Compiled By Himani Verma

Choice between 2 Tax Regimes

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Voluntary Retirement