Rental income from house property is a common source of income in India. Understanding how house property income is taxed, deductions allowed, and filing rules is crucial for taxpayers in 2025. This guide covers income calculation, tax rates, exemptions, and practical examples.

1. How House Property Income is Calculated

• Income from house property is computed as Gross Annual Value (GAV) – Deductions.
• Gross Annual Value (GAV): Higher of actual rent received or fair rent/value of property.

2. Deductions Available under Section 24

3. Taxation of Self-Occupied vs Let-Out Property

Here’s a quick reference table for easy comparison:

4. Rental Income from Multiple Properties

• Only one property can be treated as self-occupied.
• Other properties are considered let-out and taxed as income from house property.

5. Filing Rental Income in 2025

• Include under Income from House Property in ITR-1 or ITR-2 depending on other income sources.
• Maintain rent receipts, loan statements, and property documents for claim of deductions.

6. Tax Planning Tips for House Property Owners

• Claim maximum deduction on home loan interest.
• For let-out properties, maintain records of maintenance expenses.
• Plan purchase or sale of property to optimize capital gains tax along with rental income.

Conclusion

Understanding self-occupied vs let-out property taxation and using deductions effectively can reduce your tax liability in 2025. The quick reference table helps taxpayers make informed decisions about their house property income.