Lesson 52 of 53 · Tax on rent you earn · 3 min read · Reviewed 29 Oct 2026
Rent minus municipal tax paid gives the net annual value. You deduct 30% of that for repairs whatever you spend, plus the home loan’s interest, under section 22 of the Income-tax Act 2025 (24 of the 1961 Act). What remains is added to your income. Both deductions on a let-out home apply in the new regime too.
Start with the rent, take off municipal tax you paid, and deduct a flat 30% for repairs.
Interest on a loan for a let-out property is deductible in full.
In the old regime a loss can reduce other income by up to ₹2 lakh a year; the rest carries forward 8 years.
Key idea: The new regime keeps the 30% and the interest on a let-out home but allows no loss against salary or other income.
Tax rules as of 29 Oct 2026, checked on incometaxindia.gov.in.
Try the short quiz on this page to check what stuck.
In the old regime its loan interest is deductible up to ₹2 lakh; the new regime allows none.
No, it is flat whatever you spend.
Only house-property income.
For learning only, not investment advice. Built in India by a team that tracks its own money on Reva.