Income from House Property Calculator

Income from a let-out house is its Gross Annual Value, the higher of expected rent and rent received, minus municipal taxes, a 30% standard deduction and home-loan interest. A self-occupied home has nil annual value, so its home-loan interest, capped at ₹2,00,000, is a loss. In the old regime you can set off up to ₹2,00,000 of a net loss against other income each year.

1. Expected rent is the higher of fair rent and municipal value, capped at the standard rent if there is one.
2. Gross Annual Value is the higher of expected rent and rent received after unrealised rent, minus any vacancy loss when the rent received is the higher figure.
3. Net Annual Value is Gross Annual Value minus municipal taxes paid (section 23; section 21 of the 2025 Act).
4. Income from the let-out property is Net Annual Value minus a 30% standard deduction and the home-loan interest (section 24; section 22 of the 2025 Act).
5. A self-occupied home has nil annual value, so its home-loan interest plus one-fifth of any pre-construction interest is a loss, capped at ₹2,00,000.
6. The two results are added, and in the old regime up to ₹2,00,000 of a net loss is set off against other income (section 71(3A); section 109 of the 2025 Act), while the new regime allows no set-off.

Meera lets out a flat in FY 2025-26 and has opted for the old regime. Her tenant pays ₹4,20,000 for the year; the fair rent is ₹3,90,000 and the municipal valuation ₹3,60,000, with no standard rent, unrealised rent or vacancy. She paid ₹24,000 of municipal taxes and ₹2,40,000 of home-loan interest on the flat.

1. Gross Annual Value: ₹4,20,000, as the rent received is higher than both the fair rent and the municipal valuation.
2. Net Annual Value: ₹4,20,000 − ₹24,000 municipal taxes = ₹3,96,000.
3. Standard deduction: 30% of ₹3,96,000 = ₹1,18,800.
4. Income: ₹3,96,000 − ₹1,18,800 − ₹2,40,000 home-loan interest = ₹37,200.

Meera's income from house property for FY 2025-26 is ₹37,200.

Up to ₹2,00,000 a year, including one-fifth of any pre-construction interest, under section 24 (section 22 of the Income-tax Act 2025). A self-occupied house has nil annual value, so this interest becomes a loss, which only the old regime lets you set off against other income.

No. The ₹2,00,000 cap applies to a self-occupied home; for a let-out property the calculator deducts the full interest. A resulting loss can be set off against other income only up to ₹2,00,000 a year, and only in the old regime.

It is the higher of expected rent and the rent received after unrealised rent. Expected rent is the higher of fair rent and municipal value, capped at the standard rent if there is one. When the rent received is the higher figure, any vacancy loss comes off it.

It is a flat 30% of Net Annual Value, which is the annual value after municipal taxes paid, under section 24(a) (section 22(1)(a) of the Income-tax Act 2025). Home-loan interest is deducted separately, in addition to it.

Up to ₹2,00,000 a year in the old regime, under section 71(3A) (section 109 of the Income-tax Act 2025), and any excess carries forward for up to 8 years. In the new regime a house property loss cannot be set off against other income.