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Rent your premises to your company

✍️ EaseValue Advisors · Updated 17 Jul 2026 · FY 2025-26
In short

Your company can take your property (home office, godown, shop) on rent and pay you — the rent is deductible for the company, and you report it as house-property income with a 30% standard deduction.

How it works

Sign a rent agreement at a market rate; the company claims the rent as a business expense, and you show it as house-property income — after the flat 30% standard deduction (and municipal taxes and any home-loan interest).

Watch-outs

  • Rent must be reasonable/market — inflated rent to a related party can be disallowed.
  • The company deducts TDS at 10% (Section 194I) if annual rent exceeds ₹2.4 lakh.
  • Keep the agreement and rent proofs.

Net effect: ~30% of the rent is tax-free in your hands, and the whole rent is deductible for the company.

The law behind it
Section 22 Section 24(a) Section 194I Section 37
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General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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