Income from House Property Calculator (2026)

Calculate exact Net Annual Value (NAV) and deductions under Section 24 for Let-out and Self-occupied properties. Optimize your home loan interest claims.

About | Rules | Example | FAQs

Property Details

Impacts Self-Occupied interest deductions

Income Tax Output

Net Income from House Property

₹0
Gross Annual Value (GAV) ₹0
Less: Municipal Taxes - ₹0
Net Annual Value (NAV) ₹0
Less: Standard Deduction u/s 24(a) [30%] - ₹0
Less: Interest on Loan u/s 24(b)
- ₹0

Tax Insights

  • ✅ Set off losses against salary
  • ✅ Flat 30% deduction without proofs
  • ✅ Carry forward losses for 8 years

Calculation Logic

NAV = Gross Annual Value - Municipal Taxes
Income = NAV - (30% of NAV) - Home Loan Interest

Self Occupied: GAV is always ₹0. No standard deduction. Max Interest = ₹2 Lakhs.

Let Out: GAV is actual rent. 30% standard deduction allowed. No limit on interest deduction, but max loss set-off is ₹2 Lakhs.

Step-by-Step Example

If you rent a property for ₹3,00,000/year, pay ₹20,000 tax, and ₹1,50,000 interest:
  • NAV = ₹3,00,000 - ₹20,000 = ₹2,80,000
  • Standard Ded = 30% of 2,80,000 = ₹84,000
  • Net Income = ₹2,80,000 - ₹84,000 - ₹1,50,000 = ₹46,000

What is Income from House Property?

Under the Income Tax Act, the rental income you earn from a property (building or land appurtenant thereto) is taxed under the head 'Income from House Property'. The law provides significant deductions (like a flat 30% for repairs and unlimited interest deductions for let-out properties) to reduce your overall tax burden.

Self-Occupied vs Let-Out Rules

Feature Self-Occupied Property Let-Out Property
Gross Annual Value (GAV) Nil (Zero) Actual Rent Received
Municipal Taxes Not Deductible Deductible (If paid by owner)
Standard Deduction u/s 24(a) Not Applicable 30% of NAV
Max Interest Deduction u/s 24(b) ₹2,00,000 Unlimited

How the Calculation Works

The calculator first determines the NAV. For a self-occupied property, NAV is forced to zero. For rented properties, NAV = Rent minus Municipal Taxes. From this NAV, a flat 30% is deducted for repairs (regardless of actual expenses), and then the home loan interest is deducted to arrive at the final taxable income or loss.

Eligibility and Latest Rules

Under the New Tax Regime, the interest deduction of ₹2,00,000 for self-occupied properties has been removed. However, if you rent out your property, you can still claim standard deduction and interest under the New Regime. Additionally, taxpayers can now claim up to two houses as self-occupied (GAV = Nil) instead of just one.

Benefits of Section 24

  • 30% standard deduction is given without submitting any proofs or bills.
  • Losses from house property (up to ₹2 Lakhs) can be set off against Salary or Business income, drastically reducing your tax slab.

Limitations and Important Notes

  • Municipal taxes must be actually PAID in the current year to claim deduction. Due but unpaid taxes are not allowed.
  • Principal repayment is claimed under Section 80C, not Section 24.

Why is it Important to Calculate Property Income?

Home loans are large liabilities. Optimizing the ₹2,00,000 interest deduction and correctly claiming standard deductions can save you up to ₹60,000+ in pure taxes every single year.

Maximize Set-Offs

Adjust your property losses against your salary income to get maximum TDS refund.

Avoid TDS Defaults

If you are a tenant paying rent >₹50,000, ensure you check TDS on Rent.

Frequently Asked Questions

1. What is the maximum interest deduction for a Self-Occupied property?
For a Self-Occupied property, the maximum deduction for home loan interest under Section 24(b) is ₹2,00,000. If the loan does not meet certain conditions, the limit is restricted to ₹30,000.
2. Is there a limit on interest deduction for Let-Out properties?
No, there is no maximum limit for claiming interest on a let-out property. However, the overall loss under the head "House Property" that can be set off against other income is restricted to ₹2,00,000 per year.
3. What is the Standard Deduction under Section 24(a)?
Standard Deduction is a flat 30% of the Net Annual Value (NAV) allowed for repairs, maintenance, and insurance. It is available only for Let-Out or Deemed Let-Out properties, not for Self-Occupied properties.
4. Can I claim municipal taxes for a Self-Occupied property?
No, the Gross Annual Value of a Self-Occupied property is zero, so municipal taxes cannot be deducted to arrive at the Net Annual Value.
5. What happens if my property loss exceeds ₹2 Lakhs?
The loss exceeding ₹2,00,000 cannot be set off against other income in the current year. It must be carried forward to the next 8 assessment years to be set off exclusively against "Income from House Property".
6. Are multiple self-occupied properties allowed?
Yes, as per recent tax amendments, a taxpayer can declare up to two house properties as 'Self-Occupied'. Both will have a Nil Gross Annual Value.
7. Do I get standard deduction under the New Tax Regime?
Yes, standard deduction of 30% is allowed for Let-Out properties under the New Regime. However, interest deduction for self-occupied properties is NOT allowed in the New Regime.
8. What is Pre-Construction Interest?
Interest paid during the construction period can be accumulated and claimed in 5 equal annual installments, starting from the year the construction is completed.

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