Income from House Property

Income from house property is one of the five heads of income under the Income Tax Act 2025. It covers rental income (or deemed rental income) from land or buildings. The annual value is calculated based on municipal value, fair rent, and standard rent. From this, you deduct municipal taxes actually paid, and a standard deduction of 30% regardless of actual expenses. If you have a home loan, the interest paid on it is allowed as a deduction against this income under Section 24. The resulting net income is added to your other income and taxed at slab rates. Loss from house property can be set off against other heads of income up to ₹2 lakh per year, with the rest carried forward for up to 8 years.