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 Manually
   
   
3. Choose the property type as Deemed Let-Out
   
   
   
4. Enter the property address and rental income details
   
   
5. Claim 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.