ITR for Rental Income

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Sakshi Shah

Income from House Property
Income Tax
ITR for Rental Income
Last updated on April 19th, 2023

House property income refers to the income earned by an individual from a property that is owned and let out for residential or commercial purposes. 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

ParticularsSelf Occupied PropertyLet Out Property
Gross Annual Value (GAV)NILXXX
Less: Municipal Tax PaidNIL(XXX)
Net Annual Value (NAV)NILXXX
Less: Standard Deduction u/s 24 @ 30% of NAVNA(XXX)
Less: Interest on Borrowed Capital u/s 24 (XXX)(XXX)
House Property IncomeXXXXXX

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.

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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
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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 2,40,000 per annum.

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.