# Rental Income Tax for Landlords

> Rent from property is taxed as income from house property: annual value minus municipal taxes paid, then a flat 30% standard deduction and home-loan interest. Under the old regime, a loss from house property can be set off against other income up to ₹2 lakh a year, with the rest carried forward; under the new regime it can't be set off against other heads. Individual tenants paying more than ₹50,000 a month deduct 2% TDS under Section 194-IB.

Practice: Property & Capital Gains Tax — https://www.industax.com/services/property-tax/

The 30% deduction covers repairs and maintenance, so actual repair bills aren't deducted separately. Interest on a loan for a let-out property is deductible in full within the house-property head, but the set-off limits decide how much reduces your other income.

Commercial rent can attract GST once the landlord's turnover crosses the registration threshold, and companies or audited businesses paying rent deduct TDS under Section 194-I. NRI landlords face 30% TDS — see our NRI rental income page.

## Key facts

| Item | Detail |
| --- | --- |
| Head of income | Income from house property |
| Standard deduction | 30% of net annual value |
| Loss set-off (old regime) | Up to ₹2 lakh a year against other income |
| Tenant TDS (individuals) | 2% under Section 194-IB if rent > ₹50,000 a month |
| Commercial rent | GST once turnover crosses the threshold |

## Who needs this

- Landlords with residential or commercial rent
- Owners with home loans on let-out property
- Tenants who must deduct TDS on rent

## What's included

- House-property computation
- Regime comparison for interest and losses
- TDS reconciliation
- GST registration advice for commercial rent

## Documents

- Rent agreements and receipts
- Municipal tax receipts
- Home-loan interest certificate
- Form 26AS

## Process

1. **Compute** — Annual value and deductions worked out.
2. **Optimise** — Regime and set-off impact compared.
3. **File** — Reported in the right ITR form.

## Also covers

- **Rental income** — Residential and commercial rent for individuals and HUFs.

## FAQs

### Can I claim repair expenses on rented property?

No separately — the 30% standard deduction is in place of actual repairs and maintenance.

### Is TDS deducted on rent paid by individuals?

Yes, at 2% under Section 194-IB when rent exceeds ₹50,000 a month and the tenant isn't liable to tax audit.

### Does residential rent attract GST?

Renting a residential dwelling to an individual for residence is generally exempt; commercial rent is taxable once the landlord crosses the GST threshold.

## Official sources

- Income Tax e-Filing portal: https://www.incometax.gov.in/

---
Canonical page: https://www.industax.com/services/property-tax/rental-income-tax
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.