House Property Income Calculator — Annual Value and Interest
Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Compute gross annual value, municipal-tax deduction, 30% standard deduction, housing interest and usable house-property loss.
Compute income from house property
Calculation basis
A current-year new-regime loss cannot be set off against another income head or carried forward. Under the old regime, inter-head set-off is limited by the loss, ₹2 lakh and other income available.
Use one computation per property and combine co-ownership shares separately.
Gross annual value
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Income / loss from property
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Component
Amount
Net annual value
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Standard deduction at 30%
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Interest deduction admitted
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Current-year loss usable against other heads
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Loss requiring carry-forward/restriction review
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Income-tax Act, 2025 note: Section 24(b) (home loan interest deduction) continues to apply for FY 2025-26. It is being renumbered under the Income-tax Act, 2025 (effective FY 2026-27), but we could not verify the exact new section/rule number from a reliable source at the time of writing — check the current Income-tax Act, 2025 or a CA before citing a new section number for FY 2026-27 onward.
How This Is Calculated
For a self-occupied property, annual value is treated as nil, and only home loan interest is deductible — capped at ₹2,00,000 under the old regime (or ₹30,000 if specific loan conditions aren't met), and not deductible at all under the new regime. For a let-out property, income is computed as rent received/receivable (or fair rent, whichever is higher) minus municipal taxes, minus a flat 30% standard deduction, minus actual home loan interest paid (no cap for let-out property).
Frequently Asked Questions
What is the home loan interest deduction limit for a self-occupied house?
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Under the old tax regime, interest on a home loan for a self-occupied property is deductible up to ₹2,00,000 per year under Section 24(b), reduced to ₹30,000 if the loan was for repair/reconstruction, or if construction wasn't completed within 5 years of loan sanction. Under the new tax regime, this deduction is not available at all for a self-occupied property.
Is there a cap on interest deduction for a let-out property?
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No. For a let-out (rented) property, the entire actual interest paid on the home loan is deductible against rental income, with no ₹2 lakh cap — though this can create a loss from house property, which has its own set-off restrictions.
What is the 30% standard deduction on rental income?
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For let-out property, a flat 30% of the net annual value (rent minus municipal taxes) is allowed as a standard deduction for repairs and maintenance, regardless of actual expenses incurred — you cannot claim actual repair costs separately on top of this.
Source and review trail
Use the current official instrument, portal or regulator publication before acting.
Scope: Computes income (or loss) from house property — self-occupied or let-out — under Sections 22 to 24 of the Income-tax Act, including the standard 30% deduction and home-loan interest deduction.
Calculation logic
For a let-out property, determine Gross Annual Value (the higher of actual rent received and expected rent based on municipal/fair rent, subject to standard rent where applicable).
Deduct municipal taxes actually paid during the year to arrive at Net Annual Value.
Apply the flat 30% standard deduction under Section 24(a) on Net Annual Value (available regardless of actual expenditure).
Deduct home loan interest under Section 24(b): fully for a let-out property; capped at ₹2,00,000 per year for a self-occupied property under the old regime (interest deduction on self-occupied property is not available under the new regime).
For a self-occupied property, Gross Annual Value is taken as nil, so the resulting figure is typically a loss limited to the interest deduction.
Inputs and assumptions
Pre-construction interest is apportioned over 5 equal instalments starting from the year of completion, per Section 24(b) proviso.
The new tax regime does not allow the Section 24(b) interest deduction for a self-occupied property — the calculator reflects this regime-specific rule.
Exclusions and edge cases
Composite rent (rent that includes charges for furniture/services) requires separation before applying this computation — not handled automatically.
Deemed-let-out treatment for a second self-occupied property (where applicable under pre-2019 rules) is not modelled; current law allows up to two self-occupied properties.