Rental Income Tax: 3 Key Deductions Every Senior Citizen and Property Owner Should Know

Rental income can become an important source of regular income after retirement, but it must be properly recorded and reported for tax purposes. Ankit Jain, Partner, Ved Jain & Associates, explains that property owners can claim a 30% standard deduction on rental income. Municipal taxes paid by the property owner may also be deductible, subject to applicable rules. If a housing loan was taken to purchase the property, eligible interest expenses can also be considered while calculating taxable rental income. For better financial planning, rental payments should ideally be received through banking channels and all relevant records should be maintained properly.