Rental Income Tax Update: Tax is also applicable on rental income. If you earn Rs 10 lakh from rent, then let us know how you can pay zero tax.
This time a big change was made in the budget regarding tax. Announcing under the new tax regime, Finance Minister Nirmala Sitharaman said that no tax will be applicable on income up to Rs 7 lakh, but if it is more than this, you will have to pay tax.
On the other hand, if you are taking income from rent, then there is no need to pay any tax on income up to Rs 10 lakh. Let us know some ways, under which you will not have to pay any tax on income of Rs 10 lakh.
Under the new tax regime, if your income is Rs 7.5 lakh, then you can avail standard deduction of Rs 50,000.
On income of more than seven lakhs, 5% tax has to be paid on annual income of Rs.3 to 6 lakhs, 10% tax on annual income of Rs.6 to 7 lakhs.
However, if the income is Rs 10 lakh from rent, then exemption can be claimed under the new tax regime. These exemptions can be claimed under property tax and home loan interest rate payment.
Deduction up to 30% on net annual income is claimed for repair and maintenance of the house. This means that you can get a deduction of up to Rs 3 lakh on an income of Rs 10 lakh, which means that your total income will be seven lakh and you will not have to pay any tax.
