Rental Income Calculator
Work out your true after-tax rental income once vacancy, maintenance, management fees and property tax are accounted for.
Net Rental Income = Gross − Maintenance − Tax − Mgmt Fee
After-Tax Income = Net × (1 − Income Tax%)
Disclaimer. This calculator provides an estimate based on the figures you enter and simplifies actual tax rules (standard deduction, TDS thresholds, loan interest deduction) — consult a chartered accountant for your exact tax liability on rental income. Read full disclaimer →
About Rental Income Calculator
Rental income is subject to income tax in India. Gross Annual Value (GAV) is the higher of actual rent received or fair market rent. Standard deduction of 30% from GAV is allowed for repairs and maintenance (regardless of actual expenses). Net Annual Value (NAV) = GAV minus Municipal taxes paid. Taxable rental income = NAV minus 30% standard deduction minus home loan interest (no limit for let-out property).
Home loan interest on let-out property can be fully deducted from rental income, often creating a loss that can be set off against other income (subject to a Rs 2 lakh annual cap if not set off in the same year, with carry-forward of up to 8 years). TDS on rent applies at 10% if annual rent exceeds Rs 2.4 lakhs (tenant must deduct). For NRI landlords, TDS is 30%. GST does not apply to residential rental income regardless of amount. Commercial property rent above Rs 20 lakhs annually is subject to GST at 18%.
Worked Example
Monthly rent ₹25,000, 5% vacancy allowance, ₹15,000 annual maintenance, ₹12,000 property tax, 8% management fee, 10% effective income tax rate: gross annual rent (after vacancy) = ₹2,85,000, management fee = ₹22,800, total expenses = ₹49,800, net income (pre-tax) = ₹2,35,200, and after-tax annual income = ₹2,11,680 (about ₹17,640/month).