How to save tax on Rental Income? | Residential or Commercial Property

[@hemmakkada]

Informative yet simple explanation.. thank you for the information, especially the tips at the end 👏

[@accountx]

Thanks for watching🙂

[@vkj321]

From FY 20-21, house rent received upto 2.5 lakhs annually is tax free

[@davidkaran2787]

Hi, I have a question related to income from house rent. I live in a 2-storey building (grnd, 1st and 2nd floor). The property is in my father's name and he is no more. So, legally me and my sister have equal share in it. We haven't transferred the property in our names yet. I am collecting rent from 2 tenants and I live in 1st floor. While filing ITR, 1) Which form should I use to file the returns (i.e., ITR-1 or 2, etc.,) 2) how is the income calculated and can the property and water taxes paid be deducted from gross rental income ? I'm collecting the rent amounts and paying the taxes. The property is still in my dad's name.

[@accountx]

You may use ITR2 and pay tax on your share of rental income while your sister pays on her share. Property tax paid can be deducted from the rental income.

[@MuraliVenkatraman-dy9mg]

Hi, Thanks for the Video, Does this applicable for NEW tax regime as well?

[@accountx]

Yes except housing loan deduction

[@surendraadithe]

For commercial property rental income, up to how much amount can we save taxes? And under what tax deductions can we save on commercial property

[@accountx]

Taxation for rental income from commercial properties same as that from residential properties.

[@manishpundir28]

Ma'am I have below two questions from your video: 1). If property is gifted (50% share) to mother in that case would the rental income and taxes on it be divided between myself and my mother? 2). In the rental agreement if rent & maintenance are declared separately but if the tenant is still paying maintenance to me (because obviously tenant will want to claim HRA), can I still show only rent part as income in ITR? We don't know if tenant on his side is claiming HRA on both maintenance and rent. Please clarify. Thanks.

[@accountx]

1) It is not specifically so mentioned in the Income tax act. But if gift deed is registered, then it would be safe to consider proportionate rental income. 2) Since, you are receiving the maintenance money, it would be rental income for you.

[@RAJIV1987CH]

Very well explained. But one doubt.. But I have one doubt.. if the property is self occupied, then you can claim Rs. 2 Lakhs or the actual interest paid, whichever is less if the property is rented out, then you can claim the entire interest paid as deduction. There is no upper limit for the interest amount

[@accountx]

For let out property, you may claim entire interest as deduction but set off per year is limited to ₹2 lac and the excess to be carried forward for set off during future years.

[@rohanbagal639]

Can the rent received from commercial property (shop/office) be taken as Income from Business?

[@accountx]

No

[@spurthyms1087]

Make a video of computation of taxable income for commercial property, if we dont have loan and if we have loan, show deduction and calculating related to this. Take example of rental income above and below 20 lakhs are there.

[@accountx]

Thanks for the suggestion

[@sridharmm296]

Mam property is in my mother name, rent receving in joint account my self and my mother. In this case would the rental income and tax divided to both.

[@accountx]

No, fully taxable in the hands of your mother.

[@naveengupta2110]

Good Evening Ma'am, Thank you for your subject matter command. In all the example shown above, you mentioned positive income from rental property which everyone understood well. However in my case, i am at income loss (My income from Rental Prop after all deduction is coming at (144000 - 51200 = 92800) and total amount paid in interest to the bank is 183000 ................. so i am at a total income loss of 90200. How this negative income can setoff from my salary income and can this be setoff in current financial year only or is it to be carried forward? Kindly Reply at the earliest considering fag end of ITR submission. I searched a lot of content but found your video suitable so thought to drop you this query.

[@accountx]

Yes, in the current ITR, the entire loss (₹90.2k) can be set off against salary

[@spurthyms1087]

As per example taxable income is 61000, but as per tax slab upto 7 lakh not taxable know, then how come taxable?

[@accountx]

If the taxable income is up to ₹7 lac, then 100% rebate and no tax liability.

[@sappipriya]

Hi Mam, need your advise on below scenario. if monthly rent is 25000,then GAV-25000*12 =3,00,000 property tax-10,000 then NAV- 290000 Then standard deduction of 30% of NAV-87000 Total income taxable- 2,03,000 I heard that if total income taxable is less than 2.5 lakhs then the tax rate is 0 and if it is between 2.5 to 5 lakhs then it is 5%. In above case since the taxable income after all deductions is 2,03,000 we dont need to pay any tax right mam. Please help to clarify.Thanks in advance

[@accountx]

Yes, right. If you have no other income, then no need to pay tax on this.

[@shubhamagnihotri1225]

Mam i want to ask a question :- Is 30% standard deduction on house proprty is applicable in New tax regime?

[@accountx]

Yes

[@praveenreddy6435]

is it valid for commercial property loan too? can we claim interest as deduction

[@accountx]

Yes, you may.

[@amarish95]

How much we can claim if the interest exceeds the Limit of Rs. 2 lakhs for commercial property.

[@accountx]

In case of commercial properties, I think this 2lac-limit is not applicable.

[@anishmalik9661]

7:55 if property is gifted to major child, then clubbing provisions won't apply, right?

[@accountx]

Yes, you are right.

[@ROYALPAVANKUMAR]

Madam im a bank employee : we have a site in the name of my wife ,,as per our bank rules we can avail staff home loan in my name and my wife jointly: in this case is rental income received by my wife taxable to me?: my wife is not an employee

[@accountx]

No, as you are not the co-owner, rental income will be fully taxable for your wife.

[@ROYALPAVANKUMAR]

Thank you madam :