Rental Income Tax: To avoid paying tax on a yearly rental income of $100,000 or less, learn how to qualify for an exemption

 Rental Income Tax: To avoid paying tax on a yearly rental income of $100,000 or less, learn how to qualify for an exemption

Tax on Rental Income: Rental income is also subject to tax. Tell us how you may pay no taxes if you make Rs. 10 lakh from renting out your property.

This time, a significant tax-related amendment was made to the budget. Finance Minister Nirmala Sitharaman announced that under the new tax system, there will be no tax on income up to Rs 7 lakh, but that if it is higher than this, tax will be due.

On the other side, if you receive money from renting out property, you are exempt from paying taxes on earnings up to Rs 10 lakh. Give us some examples of how you can avoid paying taxes on an income of Rs. 10 lakh.

If your income is over Rs 7.5 lakh, you are eligible for the standard deduction of Rs 50,000 under the new tax law.

If your yearly income is between Rs. 3 and Rs. 6 lakhs, you must pay 5% tax; if it is between Rs. 6 lakhs and Rs. 7 lakhs, you must pay 10% tax.

However, under the new tax system, an exemption may be requested if the rental income is greater than Rs 10 lakh. These exemptions are available under the provisions for real estate taxes and mortgage interest payments.

The cost of housing repairs and upkeep is deducted up to 30% from net annual income. As a result, if you earn Rs. 10 lakh, you can deduct up to Rs. 3 lakh from your income, bringing your total income down to Rs. 7 lakh. As a result, you won't owe any tax on this amount.