Income from House Property Calculator
Calculate taxable income from house property under Section 22-27 of the Income Tax Act. Covers self-occupied, let-out, and deemed let-out properties with standard deduction and interest deduction.
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How to use this calculator
- 1
Choose the property type. Self-occupied has a nil annual value; let-out and deemed let-out use the rent figure you enter.
- 2
For deemed let-out, type the notional annual rent yourself, because the tool does not estimate a market value.
- 3
Enter municipal tax paid and home loan interest. Interest is capped at ₹2,00,000 only for a self-occupied property in the old regime.
- 4
Read the result: a positive amount is added to your other income, and a negative one is a loss that the tool does not set off or carry forward.
Frequently asked questions
How does the tool compute income for a let-out property?
It takes the annual rent you enter as the gross annual value, subtracts municipal tax to get the net annual value (never below zero), subtracts a 30% standard deduction of that net value, and then subtracts the full home loan interest. The remainder is the income from house property, which can be negative. These steps and the 30% are the figures built into this tool.
What changes for a self-occupied property?
The annual value is treated as nil, so rent and municipal tax are ignored. In the old regime the tool allows interest up to ₹2,00,000 as a negative income; in the new regime it allows no interest deduction and shows ₹0. Entering ₹3,50,000 of interest in the old regime shows -₹2,00,000, and in the new regime shows ₹0.
Does the regime setting affect a let-out or deemed let-out property?
The arithmetic does not change: the same 30% and full interest are used in both regimes. Only the note about a loss differs. The tool does not decide how a loss can be set off against other income or carried forward in either regime, so check the rules for the regime you are in.
What is deemed let-out in this tool?
It is calculated exactly like a let-out property using the rent you enter. The tool does not work out what a notional rent should be and does not apply any rule about how many homes can be treated as self-occupied, so you must supply the figure.
What happens when municipal tax exceeds the rent?
The net annual value is floored at zero, so the standard deduction is also zero. With rent ₹3,00,000, municipal tax ₹4,00,000 and no interest, the tool shows ₹0. Only the home loan interest can then produce a loss.
Are vacancy, unrealised rent or pre-construction interest handled?
No. The tool does not reduce rent for vacancy or unrealised rent, does not spread pre-construction interest over instalments and does not split income between co-owners. It also does not add house property income to your salary or compute tax. It produces one income figure for the head.
Is the output a tax amount?
No. The result is income under the head house property. Tax depends on your total income and regime, so combine it with your salary and other income in the Form 16 or regime-comparison tools. Rules change in nearly every Union Budget and the tool’s figures are not updated automatically, so the Income Tax Department or a chartered accountant governs.
Income from house property: annual value, 30% deduction and interest
How the head is computed
Income from house property is not rent minus costs. The tool starts with the rent entered as the gross annual value, removes municipal tax to reach a net annual value, takes 30% of that net value as a flat deduction, and finally subtracts the home loan interest in full. A self-occupied home skips the first three steps because its annual value is nil, so only interest remains, and the tool limits that interest to ₹2,00,000 in the old regime and to zero in the new regime. Indian tax rules and limits change in nearly every Union Budget, and the figures built into this tool are not updated automatically, so the Income Tax Department or a qualified chartered accountant governs.
Seven runs with fixed inputs
The table lists the result the tool printed for seven inputs. The first two rows differ only by regime and give the same let-out result, which shows that the regime switch does nothing to rented property in the arithmetic. Rows 3 and 4 show the self-occupied cap and the new-regime zero. The final row shows municipal tax that is larger than the rent.
| Inputs | Net annual value | Standard deduction | Interest deducted | Result |
|---|---|---|---|---|
| Let-out, rent ₹1,80,000, municipal tax ₹5,000, interest ₹2,00,000, new regime | ₹1,75,000 | ₹52,500 | ₹2,00,000 | -₹77,500 |
| Same inputs, old regime | ₹1,75,000 | ₹52,500 | ₹2,00,000 | -₹77,500 |
| Self-occupied, interest ₹3,50,000, old regime | Nil | Nil | ₹2,00,000 (capped) | -₹2,00,000 |
| Self-occupied, interest ₹3,50,000, new regime | Nil | Nil | ₹0 | ₹0 |
| Let-out, rent ₹3,60,000, municipal tax ₹12,000, interest ₹1,00,000, old regime | ₹3,48,000 | ₹1,04,400 | ₹1,00,000 | ₹1,43,600 |
| Deemed let-out, notional rent ₹2,40,000, no tax or interest | ₹2,40,000 | ₹72,000 | ₹0 | ₹1,68,000 |
| Let-out, rent ₹3,00,000, municipal tax ₹4,00,000, no interest | ₹0 | ₹0 | ₹0 | ₹0 |
Reading a positive and a negative result
With rent of ₹3,60,000, municipal tax of ₹12,000 and ₹1,00,000 of interest, the result is ₹1,43,600 of income, because the 30% deduction of ₹1,04,400 removes less than the rent leaves behind. Raise the interest to ₹2,00,000 on a smaller rent, as in the default case, and the same steps give -₹77,500. The tool prints a note for a loss and does not model whether, how much or in which year it can be set off against other income. That limit is why the number should be viewed as the starting point of a larger calculation and not as a tax bill.
What the figure leaves out
Vacancy, unrealised rent, pre-construction interest spread over years, co-ownership shares and the choice of which home counts as self-occupied are not handled. The tool also does not decide the notional rent for a deemed let-out property; you enter it. For the final tax effect, add the result to the salary and other income in the Form 16 tool or the regime-comparison tool on this site, and check the current rules with the Income Tax Department or a chartered accountant.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →