Rental Income Tax: If your yearly rent income exceeds Rs. 10 lakh, you are free from paying tax; find out how to do so

 Rental Income Tax: If your yearly rent income exceeds Rs. 10 lakh, you are free from paying tax; find out how to do so

Rental Income Tax: If your yearly rent income exceeds Rs. 10 lakh, you are free from paying tax; find out how to do so

Tax on Rental Income: Tax is levied on rental income as well. If your rent income is Rs 10 lakh, please explain how you may pay no taxes.

This time, there was a significant tax-related amendment made to the budget. Finance Minister Nirmala Sitharaman said that under the new tax system, there would be no tax on income up to Rs 7 lakh; however, if your income exceeds this, you will be have to pay tax.

However, you are exempt from paying income taxes up to Rs 10 lakh if your source of income is rent. Tell us about any strategies that can save you from paying taxes on income up to Rs 10 lakh.

If your income is Rs 7.5 lakh or more, you may take advantage of the basic deduction of Rs 50,000 under the new tax system.

If your yearly income exceeds Rs. seven lakhs, you must pay 10% tax on income between Rs. six and Rs. seven lakhs and 5% tax on income between Rs. three and Rs. six lakhs.

Nonetheless, under the new tax system, an exemption may be sought if rent income exceeds Rs 10 lakh. You may claim these exemptions under the payment of interest on your house loan and property taxes.

It is possible to deduct up to 30% of net yearly income for home upkeep and repairs. This implies that you would have a total income of seven lakh and will not be required to pay any taxes, since you may deduct up to Rs 3 lakh from an income of Rs 10 lakh.