There is no provision under which the Income Tax authorities provide for adjustment of rental income against rental payments. As per the tax laws, rental income will be taxed under income from house property. However, you could claim deduction for expenditures like municipal taxes, interest on housing loan and statutory deduction for repairs if any of them are applicable in your case. As you are a pensioner, you could also claim deduction under Section 80GG towards rental payments in Madurai within the limit of Rs 5,000 provided you or your spouse does not own any residential property in Madurai.