Outlook Money
The new tax regime provides deductions for specific expenses on a rented-out property.
It offers deductions on municipality tax, standard deductions under Section 24 (a), and interest on home loans under Section 24 (b).
Rental income on house property is taxable under the 'Income from house property' category.
The new tax regime allows a 30% standard deduction from the rental income to cover renovation/repair expenses.
The new tax regime allows deductions on home loan interests on the rented-out property.
No deduction is available under Section 24 if the house property is self-occupied.
Loss from a house property can only be adjusted against income from a house property, not against any other income head.
Starting FY 2023-24, the new tax regime is the default regime.
Compiled By Himani Verma