How to calculate income tax in case I am repaying housing loan and property is let out?



I have property under my name only in one city, which is rented out. I am repaying home loan on the same, and also earning house rent on the same. I am leaving in another city, on rent. How will my tax be calculated? What benefits I will get under income tax?

How to calculate income tax in case I am repaying housing loan and property is let out?
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4 Replies to “How to calculate income tax in case I am repaying housing loan and property is let out?”


  1. If you are employed and getting HRA, you can claim exemption u/s 10(13A) by showing rent receipts to your employer. If you are not employed or employed but not getting HRA, Still you can claim exemption u/s 80GG through your income tax return.

    With respect to the rental income you are earning, you will get 30% standard deduction and balance 70% of the rental income received will be added to your salary and other income and tax will be calculated accordingly.


  2. You can claim rebate on Housing loan. Obtain a certificate from the bank showing the deductions, Interest and Principal. But while submitting your return, you should show the rent you received as rental income and pay Income tax at applicable rates.


  3. It’s better for you to consult a legal person specially lawyer which deals with property, banks and loan issues. We have team of expert lawyers in India which can give you a best advice. Our associate lawyers, engaged for providing online legal opinion are highly experienced attorneys, with a minimum of 15 years of professional practice at the Bar in the Supreme Court. They are mostly home based, so overheads and charges are much lower in comparison. You can contact him online through website. Website info given below:





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