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).
Instead of listing every expense, this deduction automatically covers general property costs, making it easier for property owners. It applies only to let-out or deemed let-out properties.
Important Note: Standard deduction is auto-calculated on Quicko.
Steps to check standard deduction
- Navigate to File > Incomes > House Property. Select the house property card
- Under summary, you can view the standard deduction availed
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