There are 3 ways to reduce your tax liability on rental income from your property.
- Property tax deduction. Property tax you pay in that year can be deducted from your rental income before paying taxes on it.
- Maintenance, Insurance, etc. Regardless of how much you spend on repairs or insurance, you can deduct a flat 30% of the rental income.
- Mortgage interest deduction. If you have a loan on the house, the interest paid can be deducted, but the max. deduction is restricted to 1.5 Lakhs.
Be sure to account for these before paying your taxes. Here’s the official Govt. of India site for further details.