By Admin 
Rental income tax: If you have your own house and you get a lot of income from rent, then it is important for you to know how to save income tax on rent. Tax is usually calculated on the basis of slab rate. That is, the tax slab under which the person comes under, will have to pay tax on his earnings at the same rate.
30 percent tax deduction can be claimed
In case of late -out property, deduction is done at 30 percent of the Gross Gross Annual Value under ‘House Property from Head Property’. That is, to save tax on total rental income, the landlord will have to impose 30 percent standard deduction rules. Under House Tax or Property Tax, the landlord pays tax to the municipality of the city. Tax is usually calculated on the basis of many these things-
- Property location
- How new or old is the property ie what is its average age
- What is the coverage area
- How is the construction quality
- What is the average fare in location
Do calculation in this way
Now under Section 24 (A) of the Income Tax Act, you can claim 30 percent deduction on earnings from rent throughout the year. Suppose you get Rs 12,000 from rent every month, then his total earnings from rent in a year will be Rs 144,000. Explain that under Section 24 of the Income Tax Act, 30 percent standard deduction is allowed on annual rental income for repair and maintenance under Section 24.
In this way, 30 percent of Rs 144,000 will be Rs 43,200. That is, now your total rental income will be Rs 144,000 – Rs 43,200 = 100,800 rupees. Apart from this, under section 24 (b) you can also reduce interest on home loans for a year. In this, the total rental income which is Rs 100,800 and your homelone interest on it is 45,000, then your total income will be Rs 55,800.
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