How to file ITR for Rental Income?

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Sakshi Shah

Income from House Property
Income Tax
ITR for Rental Income
Last updated on April 15th, 2021

If you own a house or earn rental income, it should be reported as Income from House Property in the Income Tax Return (ITR). The taxpayer must calculate the income and pay tax on rental income at slab rates. The taxpayer should report the following types of income under the head ‘Income from House Property‘:

Calculation of Rental Income

  Particulars Self Occupied Property Let Out Property
  Gross Annual Value (GAV) NIL xxxx
Less: Municipal Tax Paid NIL (xxxx)
  Net Annual Value (NAV) NIL xxxx
Less: Standard Deduction u/s 24 @ 30% of NAV max
No Limit
Less: Interest on Borrowed Capital u/s 24 (without any ceiling limit) xxxx (xxxx)

Co-ownership of House Property

Tax Benefits on Rental Income

Taxpayers having a rental income can claim the following deductions and benefits in the Income Tax Return (ITR).

TDS on Rent Income

If you have income from rent, the tenant would deduct TDS in the following situations:

The taxpayer i.e. landlord would receive Form 16A from the tenant once the tenant files the TDS Return every quarter. The taxpayer can view TDS Credits in Form 26AS on the income tax website and claim the TDS Credit in the Income Tax Return.

ITR Form for Rental Income

The taxpayer should file the ITR Form based on the amount of total income, type of house property income and income under other heads. Here is a summary of ITR Form that a taxpayer can file in case of rent income.

ITR Form Total Income HP Income
ITR 1 or ITR 4 Upto INR 50 lacs One House Property
ITR 2 or ITR 3 More than INR 50 lacs Multiple House Property

Set-Off & Carry Forward House Property Loss

House Property Loss can be set off against any other income in the current financial year. The remaining loss can be carried forward for 8 years and set off only against house property income in future years.

As per the Income Tax Act, a taxpayer who files Belated ITR u/s 139(4) cannot carry forward loss to future years. However, the taxpayer can carry forward house property loss even if he/she files a Belated Return.


What is the difference between Sec 194I & Sec 194IB for TDS on Rental Income?

As per Section 194I, individuals or HUF (not liable to tax audit in the previous financial year) are not required to deduct TDS on payment of rent even if the rent exceeds INR 1,80,000 per annum. Under Budget 2019, individuals or HUF (not liable to tax audit in the previous financial year) must deduct and deposit TDS at 5% if the rent exceeds INR 50,000 per month.

What is the difference between Section 80EE & Section 80EEA?

A taxpayer can claim a deduction of either u/s 80EE or 80EEA. The government had introduced the deduction u/s 80EE for first time home buyers. The taxpayer can claim Sec 80EE deduction of up to INR 50,000 for interest on loan sanctioned between 1.4.16 and 31.3.17.
Later, this benefit was extended by introducing Sec 80EEA. A taxpayer can claim Sec 80EEA deduction of up to INR 1,50,000 for interest on a loan sanctioned between 01.04.19 and 31.03.21.

Do I have to pay tax in India on income from house property situated outside India?

If you hold status of a resident, income from property situated outside India is taxable whether such income is brought into India or not.
If you hold status of a non-resident or RBNOR (resident but not ordinarily resident), income from property situated outside India is taxable only if such income is received in India.

Got Questions? Ask Away!

  1. Hey @Rachit_Awasthi ,

    Yes, you can claim a deduction for both.

    • Home loan principal repayment u/s 80C up to INR 1,50,000. You can claim the home loan principal repayment up to the amount you repay. If it is partly paid by your wife, you can claim deduction only for the amount you paid

    • Rent if you receive HRA or u/s 80GG if you do not receive HRA

    Hope this helps!