How is rental income taxed in India?



My parents (who live in Mumbai right now) plan to relocate to a place outside Maharashtra. They plan to give their Mumbai residence on rent and live in a rented house as their new residence in the new place? They are both senior citens. Would they be required to pay tax on their rental income they earn in Mumbai?

3 Replies to “How is rental income taxed in India?”



  1. “Income from House Property” =
    Annual Rental income
    Less Taxes paid to municipality.
    Less Standard deduction, 30% of rental income.
    Less Interest paid on housing loan (if applicable).

    If the Taxable Income of your parents > Rs 2.4 lakhs, only then they need to pay tax.

    HMT





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