{"id":29533,"date":"2025-07-29T00:32:13","date_gmt":"2025-07-28T19:02:13","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29533"},"modified":"2025-08-20T17:03:56","modified_gmt":"2025-08-20T11:33:56","slug":"how-income-from-house-property-is-taxed-in-india","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/","title":{"rendered":"How income from house property is taxed in India"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a0d56e883b01\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a0d56e883b01\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#How_income_from_house_property_is_taxed_in_India_under_the_Income_Tax_Act\" title=\"How income from house property is taxed in India under the Income Tax Act.\">How income from house property is taxed in India under the Income Tax Act.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Income_from_House_Property_%E2%80%93_Section_22_to_27_Overview\" title=\"Income from House Property \u2013 Section 22 to 27 (Overview)\">Income from House Property \u2013 Section 22 to 27 (Overview)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Basic_Conditions_to_Qualify_as_Income_from_House_Property\" title=\"Basic Conditions to Qualify as Income from House Property:\">Basic Conditions to Qualify as Income from House Property:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Types_of_House_Property_Tax_Treatment\" title=\"Types of House Property &amp; Tax Treatment\">Types of House Property &amp; Tax Treatment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Classification_of_House_Property\" title=\"Classification of House Property\">Classification of House Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Deemed_Ownership_%E2%80%93_Section_27\" title=\"Deemed Ownership \u2013 Section 27\">Deemed Ownership \u2013 Section 27<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Computation_of_Income_from_House_Property\" title=\"Computation of Income from House Property : \">Computation of Income from House Property : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#For_Owners_Property_usage_determines_taxability\" title=\"For Owners: Property usage determines taxability\">For Owners: Property usage determines taxability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#How_to_Calculate_Taxable_Income_from_House_Property\" title=\"How to Calculate Taxable Income from House Property\">How to Calculate Taxable Income from House Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Deductions_for_Home_Loans\" title=\"Deductions for Home Loans\">Deductions for Home Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#_Deductions_Under_Old_vs_New_Tax_Regime\" title=\"\u00a0Deductions Under Old vs New Tax Regime\">\u00a0Deductions Under Old vs New Tax Regime<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Loss_from_House_Property\" title=\"Loss from House Property\">Loss from House Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Tax_Planning_Special_Cases_on_Income_from_House_Property\" title=\"Tax Planning\u00a0Special Cases on Income from House Property\">Tax Planning\u00a0Special Cases on Income from House Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Summarized_FAQs_on_Income_from_House_Propert\" title=\"Summarized FAQs on Income from House Propert\">Summarized FAQs on Income from House Propert<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Q1_Can_sub-letting_income_be_treated_as_house_property_income\" title=\"Q.1. Can sub-letting income be treated as house property income?\">Q.1. Can sub-letting income be treated as house property income?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/how-income-from-house-property-is-taxed-in-india\/#Important_Terms_in_on_Income_from_House_Property_above\" title=\"Important Terms in on Income from House Property above \">Important Terms in on Income from House Property above <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29536\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/read-eastate-tax.jpg\" alt=\"real estate tax \" width=\"857\" height=\"1263\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/read-eastate-tax.jpg 382w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/read-eastate-tax-204x300.jpg 204w\" sizes=\"(max-width: 857px) 100vw, 857px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"How_income_from_house_property_is_taxed_in_India_under_the_Income_Tax_Act\"><\/span><span style=\"color: #000080;\"><strong>How income from house property is taxed in India under the Income Tax Act.<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Income_from_House_Property_%E2%80%93_Section_22_to_27_Overview\"><\/span><span style=\"color: #000080;\"><strong>Income from House Property \u2013 Section 22 to 27 (Overview)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Basic_Conditions_to_Qualify_as_Income_from_House_Property\"><\/span><span style=\"color: #000080;\"><strong>Basic Conditions to Qualify as Income from House Property:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Income is taxable under &#8220;Income from House Property&#8221; if you are the owner (legal or deemed) of the property. The property includes buildings or land appurtenant thereto, not vacant land alone. &amp; The property is not used by you for your own business\/profession. \u00a0Conditions for Taxability are mention here under :<\/p>\n<ul>\n<li>Income must be rental\/lease-based (lumpsum or periodic).<\/li>\n<li>Must relate to a building (residential\/commercial) \u2014 not just land.<\/li>\n<li>Ownership of the property is essential (including deemed ownership).<\/li>\n<li>Property must not be used for business (if renting is your business, it&#8217;s business income).<\/li>\n<li>Property can be self-occupied or let out \u2014 both are covered.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Types_of_House_Property_Tax_Treatment\"><\/span><span style=\"color: #000080;\"><strong>Types of House Property &amp; Tax Treatment<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 356px;\" width=\"816\">\n<thead>\n<tr>\n<td>Property Type<\/td>\n<td>Taxability<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Self-Occupied<\/td>\n<td>GAV = Nil (Max 2 properties allowed as self-occupied)<\/td>\n<\/tr>\n<tr>\n<td>Let-Out<\/td>\n<td>GAV = Actual Rent or Expected Rent, whichever is higher<\/td>\n<\/tr>\n<tr>\n<td>Deemed Let-Out<\/td>\n<td>Applies when more than 2 properties are self-occupied<\/td>\n<\/tr>\n<tr>\n<td>Income from vacant land<\/td>\n<td>Income from vacant land is taxed under \u201cIncome from Other Sources<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Classification_of_House_Property\"><\/span><span style=\"color: #000080;\"><strong>Classification of House Property<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 570px;\" width=\"849\">\n<thead>\n<tr>\n<td colspan=\"2\">Type<\/td>\n<td>Description<\/td>\n<td colspan=\"2\">Tax Treatment<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td colspan=\"2\">Self-Occupied<\/td>\n<td>Used by owner\/family or vacant<\/td>\n<td colspan=\"2\">GAV = Nil (max 2 allowed)<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">Let Out<\/td>\n<td>Rented wholly or partly<\/td>\n<td colspan=\"2\">GAV = Actual Rent Received<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">Deemed Let Out<\/td>\n<td>More than 2 properties, even if vacant<\/td>\n<td colspan=\"2\">GAV = Expected Rent<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">Used for Business<\/td>\n<td colspan=\"3\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0Not taxed under this head<\/td>\n<\/tr>\n<tr>\n<td width=\"3\"><\/td>\n<td width=\"113\"><\/td>\n<td width=\"54\"><\/td>\n<td width=\"221\"><\/td>\n<td width=\"82\"><\/td>\n<td width=\"83\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Deemed_Ownership_%E2%80%93_Section_27\"><\/span><span style=\"color: #000080;\"><strong>Deemed Ownership \u2013 Section 27<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You are treated as the <em>deemed owner<\/em> if:<\/p>\n<ul>\n<li>The owner of the property transferred the property to a spouse\/minor child (other than for adequate consideration).<\/li>\n<li>Txapaer hold property which can&#8217;t be divided.<\/li>\n<li>The owner are an allottee under a co-op society.<\/li>\n<li>owner possess a property under Section 53A of the Transfer of Property Act.<\/li>\n<li>Txapaer have a leasehold interest for over 12 years.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Computation_of_Income_from_House_Property\"><\/span><span style=\"color: #000080;\"><strong>Computation of Income from House Property : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Step-by-Step Calculation:<\/strong><\/p>\n<ol>\n<li>Compute Gross Annual Value (GAV)\n<ul>\n<li>Higher of (Fair Rent vs Municipal Rent), subject to Standard Rent<\/li>\n<li>Compare Expected Rent with Actual Rent \u2192 GAV is higher of the two<\/li>\n<\/ul>\n<\/li>\n<li>Deduct Municipal Taxes (if paid by owner) : Net Annual Value (NAV) = GAV &#8211; Municipal Taxes<\/li>\n<li>Apply Standard Deduction (30% of NAV) : Deduction under Sec 24(a) = 30% of NAV\n<ul>\n<li>Deduct Interest on Home Loan [Sec 24(b)] : Max INR 2,00,000 (Self-occupied, subject to conditions)<\/li>\n<li>No limit (Let-out property)<\/li>\n<\/ul>\n<\/li>\n<li>Income from House Property = NAV &#8211; 30% &#8211; Interest<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"For_Owners_Property_usage_determines_taxability\"><\/span><span style=\"color: #000080;\"><strong>For Owners: Property usage determines taxability<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24780\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/05\/Secion-24photo_2023-06-23_00-12-02.jpg\" alt=\"house property Deduction\" width=\"1080\" height=\"933\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/05\/Secion-24photo_2023-06-23_00-12-02.jpg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/05\/Secion-24photo_2023-06-23_00-12-02-300x259.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/05\/Secion-24photo_2023-06-23_00-12-02-1024x885.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/05\/Secion-24photo_2023-06-23_00-12-02-768x663.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/05\/Secion-24photo_2023-06-23_00-12-02-800x691.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<p>Self-Occupied Properties : Definition: You or your family live in the house, or it&#8217;s vacant for the entire year.\u00a0 The following tax treatments are mentioned here:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Up to 2 properties can be treated as self-occupied.<\/li>\n<li>Annual value (rent) = INR 0 \u2192 No tax on notional rent.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Let Out Properties : Tax on rent is mandatory &amp; Rent = Actual rent received or receivable.<\/p>\n<p>Vacant Properties : If you own more than 2 houses, the 3rd property onwards, even if vacant, is deemed to be let out.<\/p>\n<p>Deemed Rent Calculation: If a house is not actually let out but is considered as let out (like the 3rd house), then Deemed Rent = Lower of Standard Rent (as per Rent Control Act) and Higher of Fair Rent (prevailing rent in locality) &amp; Municipal Rent (decided by municipal authority)<\/p>\n<p>Key Points<\/p>\n<ul>\n<li>Only two houses can be treated as self-occupied.<\/li>\n<li>Vacant 3rd house onwards \u2192 Deemed let out \u2192 Taxed on notional rent.<\/li>\n<li>You can claim interest deduction even on deemed let out property.<\/li>\n<li>Standard deduction of 30% is automatic\u2014no bills required.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"How_to_Calculate_Taxable_Income_from_House_Property\"><\/span><span style=\"color: #000080;\">How to Calculate Taxable Income from House Property<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<td>Component<\/td>\n<td>Symbol<\/td>\n<td>Description<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Actual Rent\/Deemed Rent<\/td>\n<td>A<\/td>\n<td>Total rent earned (or notional for deemed let out)<\/td>\n<\/tr>\n<tr>\n<td>Municipal Taxes Paid<\/td>\n<td>B<\/td>\n<td>Allowed as deduction (only if paid by owner)<\/td>\n<\/tr>\n<tr>\n<td>Net Rent<\/td>\n<td>C<\/td>\n<td>A &#8211; B<\/td>\n<\/tr>\n<tr>\n<td>Standard Deduction (30%)<\/td>\n<td>D<\/td>\n<td>30% of C<\/td>\n<\/tr>\n<tr>\n<td>Interest on Home Loan<\/td>\n<td>E<\/td>\n<td>Interest paid on borrowed capital<\/td>\n<\/tr>\n<tr>\n<td>Net Taxable Income<\/td>\n<td><\/td>\n<td>C &#8211; D &#8211; E<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Example : Let\u2019s say:<\/p>\n<ul>\n<li>Rent received = INR \u00a06,00,000 (A)<\/li>\n<li>Municipal taxes = INR \u00a050,000 (B)<\/li>\n<li>Loan interest = INR 2,00,000 (E)<\/li>\n<\/ul>\n<p>Then:<\/p>\n<ul>\n<li>Net Rent (C) = 6,00,000 &#8211; 50,000 = INR 5,50,000<\/li>\n<li>Standard Deduction (D) = 30% of 5,50,000 = INR \u00a01,65,000<\/li>\n<li>Net Taxable = 5,50,000 &#8211; 1,65,000 &#8211; 2,00,000 = INR 1,85,000<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Deductions_for_Home_Loans\"><\/span><span style=\"color: #000080;\"><strong>Deductions for Home Loans<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<td><strong>Deduction<\/strong><\/td>\n<td><strong>Section<\/strong><\/td>\n<td><strong>Limit<\/strong><\/td>\n<td><strong>Applicable On<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Interest on Loan<\/td>\n<td>24(b)<\/td>\n<td>INR 2 lakh (SO) \/ Full (LO)<\/td>\n<td>Post &amp; pre-construction<\/td>\n<\/tr>\n<tr>\n<td>Principal Repayment<\/td>\n<td>80C<\/td>\n<td>INR 1.5 lakh<\/td>\n<td>Self-occupied only<\/td>\n<\/tr>\n<tr>\n<td>Stamp Duty\/Registration<\/td>\n<td>80C<\/td>\n<td>INR 1.5 lakh<\/td>\n<td>Same FY as payment<\/td>\n<\/tr>\n<tr>\n<td>Additional Interest<\/td>\n<td>80EEA<\/td>\n<td>INR 1.5 lakh<\/td>\n<td>For property \u2264 INR 45 lakh (conditions apply)<\/td>\n<\/tr>\n<tr>\n<td>First-Time Buyer<\/td>\n<td>80EE<\/td>\n<td>INR 50,000<\/td>\n<td>For loans sanctioned before 31.03.2017<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"_Deductions_Under_Old_vs_New_Tax_Regime\"><\/span><strong>\u00a0<\/strong><span style=\"color: #000080;\"><strong>Deductions Under Old vs New Tax Regime<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<td><strong>Regime<\/strong><\/td>\n<td><strong>Self-Occupied<\/strong><\/td>\n<td><strong>Let-Out<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Old Regime<\/td>\n<td>Interest up to INR 2 lakh + 80C benefits<\/td>\n<td>Interest allowed (no limit)<\/td>\n<\/tr>\n<tr>\n<td>New Regime (115BAC)<\/td>\n<td>No interest or 80C deductions<\/td>\n<td>Interest allowed only for let-out<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Loss_from_House_Property\"><\/span><span style=\"color: #000080;\"><strong>Loss from House Property<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Max set-off against other income: INR 2 lakhs (Old regime only)<\/li>\n<li>Carry Forward: Allowed up to 8 years (only under \u201cHouse Property\u201d head)<\/li>\n<li>New Regime: No set-off or carry forward allowed.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Planning_Special_Cases_on_Income_from_House_Property\"><\/span><span style=\"color: #000080;\"><strong>Tax Planning\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>Special Cases on Income from House Property<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Mixed Use Property (e.g. Residence + Office) : Split the property proportionately and calculate income accordingly.<\/li>\n<li>Pre-construction Interest : Interest during construction can be claimed in 5 equal instalments starting from year of completion.<\/li>\n<li>Let out vacant houses to avoid deemed rental income.<\/li>\n<li>Structure ownership of multiple properties to optimize self-occupied status.<\/li>\n<li>Claim both HRA and loan deductions if residing in rented home while owning a separate property.<\/li>\n<li>Joint Ownership: Each co-owner can claim then Interest deduction: up to INR 2 lakh &amp; 80C principal + stamp duty\/registration: up to INR 1.5 lakh (in proportion to ownership &amp; payment made). It is to be noted that Joint ownership reduces taxable income burden. Following are Joint Owners \u2013 Tax Benefits<\/li>\n<\/ul>\n<table>\n<thead>\n<tr>\n<td><strong>Scenario<\/strong><\/td>\n<td><strong>Deduction Allowed<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Both co-owners &amp; co-borrowers<\/td>\n<td>Both can claim up to INR 2 lakh (interest) + INR 1.5 lakh (80C) in their ownership ratio<\/td>\n<\/tr>\n<tr>\n<td>Co-borrowers but not owners<\/td>\n<td>Not eligible for any deduction<\/td>\n<\/tr>\n<tr>\n<td>the Co-owners but not co-borrowers<\/td>\n<td>No interest deduction; only 80C proportionally<\/td>\n<\/tr>\n<tr>\n<td>Neither<\/td>\n<td>Only owner who pays can claim, subject to actual payment<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Summarized_FAQs_on_Income_from_House_Propert\"><\/span><span style=\"color: #000080;\"><strong>Summarized FAQs on Income from House Propert<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Q1_Can_sub-letting_income_be_treated_as_house_property_income\"><\/span><span style=\"color: #000080;\"><strong style=\"font-size: 16px;\">Q.1. Can sub-letting income be treated as house property income?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> No. It is taxed under &#8220;Income from Other Sources&#8221;.<\/p>\n<p><span style=\"color: #000080;\"><strong>Q.2 Can I claim deduction on interest from friend\/relative loans?<\/strong><\/span><br \/>\nAns. Yes, if the loan is for purchase\/construction and proof exists.<\/p>\n<p><span style=\"color: #000080;\"><strong>Q.3 Paid municipal tax in April 2025 for FY 2024\u201325?<\/strong><\/span><br \/>\nAns. Allowed, since paid within the relevant financial year.<\/p>\n<p><span style=\"color: #000080;\"><strong>Q.4. 6 properties let out?<\/strong><\/span><br \/>\nAms. Compute income <em>individually<\/em> for each, then aggregate.<\/p>\n<p><span style=\"color: #000080;\"><strong>Q.5. Can I claim both HRA and home loan deduction?<\/strong><\/span><br \/>\nAns. Yes, under certain conditions.<\/p>\n<p><span style=\"color: #000080;\"><strong>Q.6. Is rent from property taxable?<\/strong><\/span><\/p>\n<p>Ans. Yes, under \u201cIncome from House Property\u201d. Taxable if GAV &gt; \u20b92.5 lakh (basic exemption limit).<\/p>\n<p><span style=\"color: #000080;\"><strong>Q.7. Can income be negative?<\/strong><\/span><\/p>\n<p>Ans. \u00a0Yes, due to interest deductions, especially for self-occupied properties.<\/p>\n<p><span style=\"color: #000080;\"><strong>Q8: Is HRA + Home Loan deduction both allowed?<\/strong><\/span><\/p>\n<p>Ans. Yes, if you stay in rented house and own another elsewhere.<\/p>\n<p><span style=\"color: #000080;\"><strong>Q.9. Can I claim deduction for under-construction property?<\/strong><\/span><\/p>\n<p>Ans. \u00a0Yes, interest during construction is claimable post-completion in 5 equal installments.<\/p>\n<p><span style=\"color: #000080;\"><strong>Q.10. What is the interest limit under Section 24?<\/strong><\/span><\/p>\n<p>Ans. INR 2 lakh (Self-occupied) &amp; No limit (Let-out) also \u20b930,000 (Loan for repairs)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Important_Terms_in_on_Income_from_House_Property_above\"><\/span><span style=\"color: #000080;\"><strong>Important Terms in on Income from House Property above <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 486px;\" width=\"798\">\n<thead>\n<tr>\n<td><strong>Term<\/strong><\/td>\n<td><strong>Meaning<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Municipal Value<\/strong><\/td>\n<td>Valuation for municipal tax purposes<\/td>\n<\/tr>\n<tr>\n<td><strong>Fair Rent<\/strong><\/td>\n<td>Rent of similar property in area<\/td>\n<\/tr>\n<tr>\n<td><strong>Standard Rent<\/strong><\/td>\n<td>Rent fixed under Rent Control Act<\/td>\n<\/tr>\n<tr>\n<td><strong>GAV<\/strong><\/td>\n<td>Higher of expected\/actual rent (with standard rent cap)<\/td>\n<\/tr>\n<tr>\n<td><strong>NAV<\/strong><\/td>\n<td>GAV \u2013 Municipal taxes paid<\/td>\n<\/tr>\n<tr>\n<td><strong>Standard Deduction<\/strong><\/td>\n<td>30% of NAV<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29540\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/Overview-.jpg\" alt=\"Overview on income of Property taxation \" width=\"791\" height=\"923\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/Overview-.jpg 791w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/Overview--257x300.jpg 257w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/Overview--768x896.jpg 768w\" sizes=\"(max-width: 791px) 100vw, 791px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How income from house property is taxed in India under the Income Tax Act. Income from House Property \u2013 Section 22 to 27 (Overview) Basic Conditions to Qualify as Income from House Property: Income is taxable under &#8220;Income from House Property&#8221; if you are the owner (legal or deemed) of the property. The property includes &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150],"tags":[4014],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29533"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29533"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29533\/revisions"}],"predecessor-version":[{"id":29537,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29533\/revisions\/29537"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}