Notional Rent Calculator
Calculate taxable rental income for self-occupied and vacant properties in India as per Income Tax Act
Calculate Notional Rent
Enter property details to calculate taxable rental income
Calculation Results
Note: Notional rent is applicable when you own more than one residential property and one is self-occupied. The additional properties are deemed to be let out.
Understanding Notional Rent in India
What is Notional Rent?
Notional rent is a concept in the Indian Income Tax Act where property owners are taxed on imaginary rental income from properties that are not actually rented out. This applies when you own more than one residential property and choose one as self-occupied.
The tax department considers these additional properties as “deemed to be let out” and calculates tax based on the potential rental income they could generate.
When Does Notional Rent Apply?
Notional rent applies in these situations:
- You own multiple residential properties
- One property is self-occupied
- Additional properties are vacant or used by family
- Commercial properties that are not rented out
In such cases, the Income Tax Department considers these properties as “deemed to be let out” and taxes you on their potential rental value.
How is Notional Rent Calculated?
Notional rent is determined as the highest of:
- Municipal valuation of the property
- Fair market rent for similar properties in the area
- Standard rent fixed under Rent Control Act (if applicable)
Important: For self-occupied properties, the Gross Annual Value (GAV) is considered zero. However, for deemed let-out properties, GAV is calculated as above.
Deductions Allowed
From the notional rent, you can claim these deductions:
Municipal Taxes
Taxes paid to local authorities during the year
30% Standard Deduction
For repairs and maintenance
Home Loan Interest
Interest paid on home loan for the property
Frequently Asked Questions
No, notional rent applies only when you own more than one residential property. For a single self-occupied property, no notional rent is calculated.
If you actually rent out the additional property, you’ll be taxed on actual rent instead of notional rent. Alternatively, you could consider gifting the property to family members (within exemption limits) or converting it to commercial use.
The same rules apply to inherited properties. If you already have one self-occupied property, any additional inherited residential property will be subject to notional rent tax.
Q1. What is notional rent in India?
A: Notional rent is the hypothetical income assumed by the Income Tax Department for a property that is owned but not rented out.
Q2. Why should I calculate notional rent?
A: It is required for income tax purposes if you own more than one self-occupied property.
Q3. Is notional rent applicable in Maharashtra?
A: Yes, it applies if you have multiple self-occupied properties or leave a house vacant.
Q4. How is notional rent calculated in Gujarat?
A: It is calculated based on market rental value, municipal value, and standard rent laws.
Q5. Can I use this calculator for properties in Goa?
A: Yes, this calculator covers Goa along with all West Indian states.
Q6. Is notional rent taxable?
A: Yes, it is considered under “Income from House Property” in ITR.
Q7. What if my property is vacant? Do I still pay tax?
A: Yes, notional rent applies to vacant properties that are not your primary residence.
Q8. How many houses can be shown as self-occupied?
A: As per the current law, only two properties can be claimed as self-occupied.
Q9. How to avoid paying tax on notional rent?
A: Only two self-occupied properties are tax-free. Rent out others or declare notional rent.
Q10. Is notional rent considered for home loans?
A: No, it’s only used for income tax evaluation.
Q11. What values are used in notional rent calculation?
A: Municipal value, fair rent, standard rent, and actual rent (if applicable).
Q12. What is the formula for notional rent in Rajasthan?
A: Notional rent = Higher of municipal value or fair rent (not exceeding standard rent).
Q13. Can I use this calculator for commercial properties?
A: No, it is only for residential self-occupied or vacant properties.
Q14. Is there a government notional rent calculator?
A: No official tool exists, but private calculators like this are accurate.
Q15. When should notional rent be calculated?
A: Annually, at the time of filing your income tax returns.
Q16. Does notional rent apply to inherited properties?
A: Yes, if you inherit and keep more than two as self-occupied, it applies.
Q17. What documents are needed for calculating notional rent?
A: Property municipal value, market rent estimate, and ownership documents.
Q18. Can I calculate notional rent for under-construction property?
A: No, it applies only after construction is complete.
Q19. Is notional rent applicable in Mumbai flats?
A: Yes, especially if you own multiple flats and keep them vacant.
Q20. Will this calculator work for 2025 returns?
A: Yes, it’s updated with the latest guidelines for FY 2024-25.
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