Calculation of Taxable Income From House Property

Income from House Property is chargeable to Income tax in India. This includes income from both commercial and residential properties. In most cases, income by way of rent from commercial properties is taxable under the Head Income from House Property unless the assessee is able to prove that such renting activity is carried on as part of  a renting business where the income can then be claimed as income chargeable under the Head Income From Business or Profession. Find below a calculator that makes it easy to calculate the income chargeable to tax under the specified Head of Income.

What is Income From House Property? 

Income by way of rent from any residential or commercial property, being building or land appurtenant thereto, of which any Indian assessee is the owner or deemed owner is said to be “Income from house property” as per Chapter IV of the Income Tax Act 1962 and shall be chargeable to tax under such Head of Income. Such property includes any residential house, commercial building, office space, warehouse or any land appurtenant thereto.

How to calculate Income from House Property?

The following Income from House Property calculator helps assessees in determining the total income chargeable to tax under the above given head of income.It is useful for assessees who are the owners or deemed owners of any residential or commercial property to determine their total income and hence the tax liability on such income. 

Income From House Property Calculator

Enter data in applicable bordered cells
A

Determination of Income from House Property No. 1
1 Rent received or receivable/ Annual lettable value
2 Unrealized Rent (Allowable as deduction for let out properties only if certain conditions are fulfilled)
3 Corporation or Municipal Taxes paid to local bodies
( Eligible for deduction only if such taxes are actually paid during the financial year )
4 Sum of Deductions ( A2 + A3 )
5 Balance Income chargeable to Tax ( A1 – A4 )
6 Deduction under Section 24(a) for Repairs and Maintenance – 30% of ( A5 )
7 Deuction under Section 24(b) for Interest payable on borrowed capital (In case of Self Occupied house Property, the maximum allowable deduction is Rs. 2 lacs )
8 Income from Housing Property No. 1 ( A5 – A6 – A7 )
B

Determination of Income from House Property No. 2
1 Rent received or receivable/ Annual lettable value
2 Unrealized Rent (Allowable as deduction for let out properties only if certain conditions are fulfilled)
3 Corporation or Municipal Taxes paid to local bodies
( Eligible for deduction only if such taxes are actually paid during the financial year )
4 Sum of Deductions ( B2 + B3 )
5 Balance Income chargeable to Tax ( B1 – B4 )
6 Deduction under Section 24(a) for Repairs and Maintenance – 30% of ( B5 )
7 Deduction under Section 24(b) for Interest payable on borrowed capital (In case of Self Occupied house Property, the maximum allowable deduction is Rs. 2 lacs )
8 Income from Housing Property No. 2 ( B5 – B6 – B7 )
C

Determination of Income from House Property No. 3
1 Rent received or receivable/ Annual lettable value
2 Unrealized Rent (Allowable as deduction for let out properties only if certain conditions are fulfilled)
3 Corporation or Municipal Taxes paid to local bodies
( Eligible for deduction only if such taxes are actually paid during the financial year )
4 Sum of Deductions ( C2 + C3 )
5 Balance Income chargeable to Tax ( C1 – C4 )
6 Deduction under Section 24(a) for Repairs and Maintenance – 30% of ( C5 )
7 Deuction under Section 24(b) for Interest payable on borrowed capital (In case of Self Occupied house Property, the maximum allowable deduction is Rs. 2 lacs )
8 Income from Housing Property No. 3 ( C5 – C6 – C7 )
D

Calculation of Total Income under the Head “Income from House Property”
1 Rent of earlier years realized under section 25A/AA
2 Arrears of rent received during the year under section 25B after deducting 30%
3 Total Taxable Income under the Head “Income from House Property”
D3=A8 + B8 + C8 + D1 + D2
 

You may use our income tax calculator to determine the tax on such taxable income for assessment year 2015-2016. If you are in receipt of House Rent Allowance as well, you can determine the taxable portion of  such amount received using our HRA calculator

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