I've just started renting out my condo.

I don't make any money from renting it out, in fact once I've paid the mortgage instalment and service charges, I lose money every month so it's a negative cash flow to me.

May I know whether I still have to declare and pay tax on the rental income? If I don't and get audited, what's the penalty?

Thanks. Now that I know that I don't have to declare the rental income in my tax return but I'll keep the receipts just in case I get audited.