Rental Income India Landlord ITR Guide
Schedule HP, 30% standard deduction, SOP vs let-out choice, and advance tax after tenant TDS.
The 60-second version
Rental income lands in ITR Schedule HP. I pick self-occupied vs let-out per property, net tenant TDS, and set advance tax if net rent is high.
One self-occupied choice per year
India allows two self-occupied houses without rental tax — I declare which properties are SOP vs let-out each FY.
Let-out rent: 30% standard deduction under Section 24(a) automatically — no receipts needed.
Interest on home loan for let-out property: full interest deductible against rent (no ₹2L cap).
Tenant TDS: Form 26Q guide.
SOP vs let-out comparison
| Aspect | Self-occupied | Let-out |
|---|---|---|
| Rental tax | Nil (up to 2 houses) | Rent − 30% − interest |
| Section 24(b) interest | ₹2L cap | Full interest |
| Tenant TDS | N/A | 194-I / 194-IB |
| Vacant second home | Deemed let-out possible | Declare notional rent |
| ITR form | ITR-2 if capital gains too | Schedule HP mandatory |
Landlord ITR sequence
Classify property
SOP vs let-out — document choice in workbook.
Gross rent
Actual rent or municipal value if vacant.
Deductions
30% standard + loan interest + property tax paid.
TDS credit
Match Form 26AS tenant deductions.
Advance tax
Pay instalments if net rental tax > ₹10k after TDS.
HP computation
Rental ITR kit
- Rent agreement.
- Bank rent credits.
- Property tax receipts.
- Loan interest certificate.
- Form 16A from tenant.
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Two cities
Job in Bangalore + owned flat in Mumbai — usually Mumbai let-out, Bangalore SOP.
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0 of 4 checked
Rent to parents?
Taxable if genuine — avoid sham transactions.
NR tenant?
Section 195 TDS — higher rate without lower deduction cert.
Partial year let-out?
Pro-rate rent and interest by months.
Multiple tenants?
Sum all rent against one property in Schedule HP.
Repair bills?
Not separate deduction — covered by 30% standard.
RNOR foreign rent?
Foreign property rent may be exempt in RNOR — separate schedule.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.