A Bengaluru CA's viral post explains how Rs17 lakh rental income can attract zero tax under the new regime using Section 24(a) and Section 87A rules.
A viral LinkedIn post has triggered fresh interest in how Rs 17 lakh annual rental income can attract zero income tax under India's new tax regime. The explanation claims the result is possible legally by using existing deductions and rebates in the Income Tax Act.
The post gained traction after it broke down how a landlord can reduce taxable income without submitting bills or receipts. It also highlighted that the benefit is not limited to wealthy taxpayers.
The post was written by Bengaluru-based Chartered Accountant Meenal Goel, who describes herself on LinkedIn as a CA and educator with prior roles at Deloitte and KPMG. "Rich pay 'Zero' tax on Rs 17 lakh rental income. Privilege?" she wrote. "Well you can use this trick too."
How It Works
The calculation begins with Section 24(a), which allows a flat 30% standard deduction on income reported under "Income from House Property". No proof of expenses is required under this provision.
On Rs 17 lakh of rental income, the deduction lowers the taxable amount to Rs11.9 lakh.
The second step uses Section 87A under the new tax regime introduced in Budget 2025-26. The rebate was raised to Rs 60,000 for taxable income up to Rs 12 lakh.
That rebate offsets the tax of about Rs 59,000 payable on Rs11.9 lakh of taxable income. "Net tax payable = Rs 0 tax on Rs17 lakh of rental income," Goel wrote.
Key Conditions
The post also warned that the outcome depends on specific conditions.
First, rental income should be the taxpayer's main source of earnings, with no large salary income alongside it. Second, the new regime should be the better option based on the person's overall tax position.
Third, ownership of the property, rent receipts and supporting records must be genuine. "Your ownership, rent flow, and documentation must be genuine. The tax code isn't broken," she wrote.
Why It Matters
The post has drawn attention because it shows how tax liability can change sharply depending on income type and the regime selected.
It also underlines that taxpayers with major additional income streams may not get the same nil-tax outcome. Goel ended her post with a caution. "Most people just don't read it carefully enough," she wrote. "This is for informational purposes only. Always consult a CA for your specific tax situation."
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