Rental Income Tax Calculator

Rent from property is included in your total income and taxed at the normal slab rates, rather than under a separate schedule of block rates. That is a change from how it worked for years, and it matters: rent now stacks on top of your other income and can push the whole lot into a higher band, while the deductions allowed against it genuinely reduce the charge.

A statutory deduction of one fifth of the rent chargeable, given automatically whether or not you spent anything on repairs. You do not have to evidence it and you cannot claim more than it for repairs — actual repair spending above the allowance is not separately deductible. It is applied for you above.

Interest on a loan taken to acquire, construct, renovate or reconstruct the property; insurance premium on the property; any local rate, tax, charge or cess on it; ground rent; legal costs of defending title or the tenancy; and expenditure on rent collection, subject to a cap that is commonly applied at 4% of the rent chargeable. Unpaid rent written off as irrecoverable can also be claimed once the conditions are met. Enter these in the deductions field — the repairs allowance is separate and is already applied.

No. Tax deducted from rent under Section 155 is advance tax, creditable against the liability worked out here — not a final tax. If the withholding exceeds your actual liability, the excess is refundable; if it falls short, the balance is paid with your return. The panel shows which way it goes.

No. Income from property means rent you actually receive. A house you live in produces no rental income and belongs nowhere in this calculation, though it may be relevant to the separate deemed-income charge under Section 7E.

Enter the rent you actually received. A vacancy allowance exists for property that was vacant during the year, and unrealised rent may be deductible where the tenant has genuinely defaulted and recovery steps have been taken — those are relief claims with conditions attached, so speak to your advisor rather than simply reducing the figure.

A refundable security deposit is not income. A non-adjustable amount received in relation to the property is treated as income, spread across a number of years under the law rather than taxed all at once, and there are anti-avoidance rules where it is refunded and a fresh one taken. The forfeited or non-adjustable field above is for amounts that have genuinely become yours.

Then both go into the same total. Enter your other taxable income and pick the slab schedule that fits your position — the calculator taxes the combined figure and then shows how much of the tax is attributable to the rent, which is the number people actually want.