Calculate rent for Deemed let-out property

Calculate rent for Deemed let-out property

Owning a home is a dream for many. However, if you own more than two properties for personal use, the additional properties will be treated as deemed let-out. This means you’ll need to pay tax on the notional rental income. Keep reading to learn how rent is calculated for deemed let-out properties.


Calculate rent for Deemed let-out property

Expected rent is the higher of the following:

  • Fair Rent Value: The rent expected for a similar property in the same area
  • Municipal Value: The rent determined by municipal tax laws
  • Standard Rent: The rent as defined under the Rent Control Act (if applicable)

Steps to add a Deemed Let-Out property


  1. Go to File > Incomes > House Property

  2. Select Add ManuallySelect Add Manually

  3. Choose the property type as Deemed Let-Out
    Choose the property type as Deemed Let-Out


  4. Enter the property address and rental income detailsEnter the property address and rental income details

  5. Claim the deductions for municipal taxes and interest on home loanClaim the deductions for municipal taxes and interest on home loan



Note: Any losses from deemed let-out properties cannot be set off or carried forward.


If you still have any further queries, you can raise a ticket to get in touch with us.

    • Related Articles

    • Manage House Property Income

      House property includes any building or land, such as a house, apartment, office space, or hotel. This guide explains when to report your property in the ITR, how to add it, and the required details. When to Report House Property in Your ITR You earn ...
    • How is standard deduction on rent calculated?

      If you’ve rented out your property, ongoing costs like maintenance, repairs, or upkeep are still ongoing. To simplify things, the Income Tax Department allows a 30% standard deduction on the net annual value (rent received minus property taxes paid). ...
    • Claim Deduction for Rent Paid

      You can claim a deduction on the rent you pay for your accommodation under the old tax regime. This benefit is only for individuals who don't receive a House Rent Allowance (HRA) from their employer or are self-employed. How is deduction u/s 80GG ...
    • Claim House Rent Allowance

      People often move to new cities for work, which naturally increases their living expenses — one of the biggest being house rent. To help with these costs, employers include House Rent Allowance (HRA) as part of your salary. While the HRA received is ...
    • Claim property taxes paid

      Property tax is an annual fee that property owners pay to local governments or municipal bodies. It’s used to fund public services like roads, sanitation, and infrastructure within the area. If you pay property tax on a rented property, you can claim ...