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?

How is rental income taxed in India?
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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.


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