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 PropertyGo 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.