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Income Tax Act 2025 · House property

House Property Income under the Income-tax Act, 2025

How rental income is taxed — annual value, the 30% standard deduction, home-loan interest (₹2 lakh cap for self-occupied), and self-occupied vs let-out treatment.

Rental income from buildings and land you own is taxed under the head "Income from house property" — Chapter IV-C (sections 20 to 25) of the Income-tax Act, 2025. The tax is charged on the property's annual value, not simply the rent you collect, after two deductions: a flat 30% standard deduction and the interest on money borrowed to buy or build the property.

  • Section 20 — the charge on house property income.
  • Section 21 — how the annual value is determined (and when it is nil for a self-occupied home).
  • Section 22 — the 30% standard deduction and the home-loan interest deduction (capped at ₹2,00,000 for self-occupied).
  • Section 23 — arrears and unrealised rent received later.

Sections in this topic

§20
Section 20 of the Income-tax Act, 2025 — Income from House Property (the Charge)
The charging section — the annual value of buildings/land you own is taxed under house property, except portions used fo...
§21
Section 21 of the Income-tax Act, 2025 — Annual Value of House Property: How It Is Determined
The annual value is the higher of expected or actual rent, minus municipal taxes; nil for up to two self-occupied homes.
§22
Section 22 of the Income-tax Act, 2025 — 30% Standard Deduction & Home-Loan Interest on House Property
The two house-property deductions — a flat 30% of annual value and interest on borrowed capital (₹2 lakh cap for self-oc...
§23
Section 23 of the Income-tax Act, 2025 — Arrears of Rent and Unrealised Rent Received Subsequently
Arrears of rent and unrealised rent received subsequently
§24
Section 24 of the Income-tax Act, 2025 — Property Owned by Co-owners (and How Interest & Standard Deduction Are Split)
Section 24
§25
Section 25 of the Income-tax Act, 2025 — Interpretation & Deemed Owner of House Property
Interpretation

Key rules, limits & exemptions

⚖️
Home-loan interest deduction on house property
How much home-loan interest you can deduct — ₹2 lakh cap for a self-occupied home, actual interest for a let-out one, an...

Frequently asked questions

Which sections tax house property income in the Income-tax Act 2025?
Sections 20 to 25 (Chapter IV-C). Section 20 charges the income, 21 fixes the annual value, and 22 gives the 30% deduction and home-loan interest deduction.
How many houses can be treated as self-occupied?
Up to two houses can be treated as self-occupied with a nil annual value under Section 21(6)-(7); others are treated as deemed let-out.
Disclaimer: Educational overview of the Income-tax Act, 2025 (effective 1 April 2026), not professional advice. Confirm your position with our team before acting.

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Rajat Agrawal ✓ EaseValue Team 3 hours ago
Thanks for this information

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§20 — Section 20 of the Income-tax Act,...§21 — Section 21 of the Income-tax Act,...§22 — Section 22 of the Income-tax Act,...§23 — Section 23 of the Income-tax Act,...§24 — Section 24 of the Income-tax Act,...§25 — Section 25 of the Income-tax Act,...

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