Rental Income Tax India 2026: Deduction, TDS & ITR
Tax on Rental Income in India 2026: The 30% Deduction, TDS Rules, Tax Calculation and ITR Filing India | October 20, 2026 An apartment owner in Hyderabad receives ₹30,000 per month in rent. Over twelve months, the property generates ₹3.6 lakh. Does the owner need to pay income tax on the entire ₹3.6 lakh? Not necessarily. India's income-tax framework allows qualifying owners of let-out house property to calculate taxable income after prescribed deductions. One of the most important is the 30% standard deduction on net annual value . Eligible municipal property tax actually paid by the owner is generally deducted before applying this percentage. Where the property was purchased or improved using borrowed capital, qualifying housing-loan interest may also be deductible in computing house-property income. The final taxable amount can therefore differ substantially from the rent deposited into the landlord's bank account. But rental-income taxation is not limited to deductions. Som...