New Tax Regime Maintains Full Interest Deductions for Let-Out Properties

Taxable rental income is reduced through the application of a 30% standard deduction and the deduction of housing loan interest. Under the new income tax regime, rental income is categorized as Income from house Property. The calculation begins with gross rent received, which is reduced by municipal taxes paid by the owner to arrive at the Net Annual Value. A flat 30% standard deduction for maintenance and repairs is applied to this value without requiring bills or proof. Interest paid on a housing loan for a let-out property is fully deductible without an upper limit. The remaining balance is the taxable income from house property.