Compute income or loss from house property under the entire Chapter IV-C (Sections 20–25). Supports multiple properties, co-ownership, and arrears of rent.
For guidance only. Calculations are estimates based on published IT Act 2025 rates. Verify with a CA before filing your return. Foreign property income is noted but DTAA relief is not computed here.
No properties added yet. Add your first property to begin.
Rent arrears or previously unrealised rent recovered this year. Taxable regardless of ownership status (Section 23(2)). Cannot be offset against house property losses — treated as a separate non-offsettable line item.
Chapter IV-C of the Income Tax Act 2025 taxes you on the annual value of property you own — whether you live in it, rent it out, or leave it vacant.
Sections 20–25
House property income is governed by Sections 20–25 of the IT Act 2025 (replacing Sections 22–27 of the 1961 Act). Section 20 is the charging section; Section 21 defines annual value; Section 22 lists deductions.
Self-occupied: nil annual value
Up to 2 self-occupied properties are taxed at nil annual value. Only home loan interest is deductible — under the optional regime, up to an aggregate ₹2L cap across all self-occupied properties.
Let-out: 30% standard deduction
For let-out and deemed let-out properties, you can deduct 30% of NAV as a standard deduction (Section 22) — no receipts needed. Plus the full home loan interest (no cap for let-out properties).
Expected rent = max(Municipal value, Fair market rent), then capped at Standard rent (if Rent Control Act applies)
Adjusted actual rent = Actual rent received − Unrealised rent
GAV = max(Expected rent, Adjusted actual rent) — or just Adjusted actual rent if Section 21(2) vacancy relief applies
NAV = GAV − Municipal taxes paid by owner (payment basis, not accrual)
Income = NAV − 30% standard deduction (Section 22) − Home loan interest
| Type | Annual Value | Interest deduction |
|---|---|---|
| A — Self-occupied (max 2) | Nil | Up to ₹2L aggregate (optional regime only) |
| B — Let-out (full year) | Higher of expected or actual rent | Full amount, no cap |
| C — Let-out then vacant | Actual rent only (Sec. 21(2) relief) | Full amount, no cap |
| D — Partly let / partly self-occ | Apportioned by units | Apportioned; SO portion subject to ₹2L cap |
| F — Deemed let-out (3rd property) | Expected rent | Full amount, no cap |
| G — Builder inventory | Nil within 2 years; Type F after | Deductible |
| H — Own business use | Excluded — report under PGBP | Not applicable |
Loss set-off — Optional Regime
House property losses can be set off against salary or other income up to ₹2 lakh per year. Remaining loss is carried forward for up to 8 years against future house property income only.
Loss set-off — Default Regime
No set-off allowed against other income. House property losses under the default regime are carried forward as-is, against future house property income only.
Foreign property (Type I)
Resident individuals must declare income from foreign property in their Indian income tax return. The computation is the same as for Indian property. DTAA (Double Tax Avoidance Agreement) relief for taxes paid abroad must be computed separately — this calculator does not handle DTAA credit.