Sir, I own one house which I have given in rent. Should I show the rent received in my income tax return, or is the rent exempted since I have only one house.

Ans: Hi Shakir Madam
Yes, the standard deduction is available to be claimed

Ans: Yes, you can offer rent income of Rs.8,34,000 on property owned by you and claim standard deduction of 30%.

Ans: To claim HRA exemption, you must receive house rent allowance as part of salary structure and submit relevant details/documents to employer.

Ans: Your house owner is deducting tax from the extra rent you asked him to return. It is important to assess whether this is a fair deduction or if he is keeping a part of your money unfairly.

Understanding Taxation on Rental Income
Your house owner is a senior citizen and has five rental properties.
He receives rent from other tenants in cash, which may not be reported as income.
The rent he receives from you is directly deposited into his bank account. This means it is officially recorded.
He may be liable to pay tax on this recorded income.
Why Is He Deducting Tax?
If he is filing income tax returns properly, he should pay tax on total rental income.
The tax he pays depends on his total income, including all rental earnings.
If he has no other income, rental income is taxed as per his slab.
If his total taxable income exceeds the exemption limit, tax is applicable.
Assessing If He Is Cheating You
Your employer is paying Rs 9,000 rent, but your actual rent is Rs 4,900.
The extra Rs 4,100 should be returned to you in full.
He is deducting a tax amount before refunding, which raises concerns.
The tax rate he claims to deduct should be verified.
If he is keeping a significant portion, he may be misusing tax as a reason.
Steps to Verify the Tax Deduction
Ask him to provide a written explanation of the tax deduction.
Request a receipt or breakdown of how much tax he is paying on rental income.
Check his income tax return (if he agrees) to see if he is genuinely paying tax.
If he is hesitant, he may be deducting more than required.
What Can You Do?
Ask your employer to pay only Rs 4,900 directly to him instead of Rs 9,000.
If the employer insists on paying Rs 9,000, ask for an official agreement with the owner.
Clarify in the agreement that extra rent paid will be refunded without deductions.
If he refuses, inform him that you will consult a tax expert.
You can also ask him to show proof of tax paid on the deducted amount.
Handling This in a Legal Way
There is no rule that allows a landlord to deduct tax from refunded rent.
Rental income tax is the landlord’s responsibility, not yours.
He should pay tax on his total income, not on your refund.
If he is deducting an unusually high amount, it is unfair.
Alternative Options
Consider renting a different house where the rent payment process is straightforward.
If your employer allows, request them to revise the rent agreement.
Check if your company can provide a direct reimbursement to you instead.
Final Insights
Your landlord is responsible for paying tax on his rental income.
He cannot deduct tax from the amount he is refunding to you.
If he insists on deducting tax, ask for proof and clarification.
If he refuses to return the full extra amount, he may be misusing tax as an excuse.
You can take steps to ensure you receive the rightful refund.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment