House Property Income Calculator India — FY 2025-26
Calculate tax on rental income under "Income from House Property" (Sections 22–27). Full Section 24 waterfall: GAV → NAV → 30% standard deduction → home loan interest → taxable income or loss. Compare self-occupied vs let-out combinations, model pre-construction interest in 5 instalments, and compute the ₹2 lakh loss set-off against other income.
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How to Use This Calculator
Rental Income Tax tab
Enter your annual rent received, municipal taxes paid, home loan interest, and other income (salary). The calculator walks through the full Section 22–27 computation: GAV → NAV → 30% standard deduction → home loan interest deduction → taxable income or loss. Choose old or new regime to see how the loss set-off rules differ. If the result is a loss, it shows how much can be set off and how much carries forward.
Self-Occupied vs Let-Out tab
Enter details for two properties — rent (if let out), municipal taxes, and loan interest for each. The calculator runs two scenarios: Property 1 as self-occupied (SOP) with Property 2 let-out (LOP), and vice versa. It compares the combined HP income or loss and recommends which arrangement saves more tax. Under old regime, the SOP interest is capped at &rupee;2L; under new regime, SOP gets no interest deduction at all.
Pre-Construction Interest tab
Enter the total interest paid during the construction period and current year interest after completion. The calculator shows how the pre-construction interest is claimed in 5 equal annual instalments starting from the year of completion. For self-occupied properties, it highlights the &rupee;2L cap impact. For let-out properties, the full amount is deductible with no cap.
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The Formula — Income from House Property
Rental income in India is taxed under the head “Income from House Property” (Sections 22–27 of the Income Tax Act, 1961). The computation follows a fixed waterfall:
Let-out: GAV = Higher of (Actual Rent Received) or (Fair Rent / Expected Rent)
Self-occupied: GAV = Nil (deemed to be zero)
Step 2: Net Annual Value (NAV)
NAV = GAV − Municipal Taxes Paid by Owner
(Municipal taxes must actually be paid in the year to be deductible)
Step 3: Standard Deduction — Section 24(a)
Standard Deduction = NAV × 30%
(Flat 30% — no bills, no proof. Covers repairs, maintenance, insurance)
Step 4: Home Loan Interest — Section 24(b)
Let-out property: Interest deduction = Full loan interest (NO upper limit, both regimes)
Self-occupied (old regime): Interest capped at &rupee;2,00,000
Self-occupied (new regime): Interest deduction = &rupee;0 (NOT available)
Step 5: Taxable Income / Loss
Taxable HP Income = NAV − Standard Deduction − Loan Interest
(If negative = “Loss from House Property”)
Step 6: Tax Payable
Tax = Taxable HP Income × Your Slab Rate + 4% Cess
Loss Set-Off Rules
Old regime: HP loss set off against salary/other income up to &rupee;2,00,000/FY
New regime (115BAC): HP loss only against other HP income, NOT salary
Carry forward: 8 assessment years (only vs future HP income)
Pre-Construction Interest
Total pre-construction interest ÷ 5 = Annual instalment
Claimed from year of completion, ON TOP of current year interest
SOP: Combined total subject to &rupee;2L cap (old regime) or &rupee;0 (new regime)
From FY 2019-20, up to 2 properties can be self-occupied. A third property is “deemed let-out” and its expected rent is taxed even if it is vacant.
Example
Amit — Bangalore landlord, &rupee;30,000/month rent with &rupee;2.5 lakh loan interest
Amit owns a 2BHK flat in Bangalore which he rents out for &rupee;30,000/month (&rupee;3,60,000/year). He pays &rupee;15,000/year in municipal taxes and &rupee;2,50,000/year in home loan interest. His salary income is &rupee;8,00,000. He is in the 20% tax bracket under old regime.
Step 1 & 2: GAV and NAV
Step 3 & 4: Deductions under Section 24
Step 5: Taxable Income / Loss
Tax Impact (Old Regime)
Despite receiving &rupee;3.6 lakh rent, Amit’s loan interest and standard deduction create a small HP loss of &rupee;8,500, which he sets off against salary — reducing his taxable income. If his loan interest were higher (say &rupee;4 lakh), the loss would be much larger, but the set-off would still be capped at &rupee;2 lakh per year.