House property is any Land or Building or land attached to the building. The land could be a courtyard, parking space, or compound. A taxpayer needs to report income earned from such Property while filing ITR. Hence it is important to keep supporting documents while calculating House Property Income. House property also includes:
- Residential houses/Flats
- Office space
- Factory sheds
- Cinema building
- Workshop building
- Hotel building etc.
You can file ITR-1 if you have earned income from one house property. However, you need to file ITR-2 if you own more than one house property. You can file ITR online using ITR Utilities or through registered e-Return Intermediary (ERI) like Quicko.
House Property Income Documents Checklist
Income Tax Department (ITD) issues Permanent Account Number (PAN). It is an alphanumeric ID of a taxpayer who is liable to pay taxes. PAN enables the department to link all transactions of the “Person” with his “Income”. Hence it is the most essential document while filing ITR.
Aadhaar (Aadhaar Card) a 12 digit unique identification number issued by the UIDAI (Unique Identification Authority of India). It is mandatory for Resident Individuals to provide details of Aadhaar while filing ITR.
While filing ITR taxpayers have to disclose the address of all the properties owned by them. Utility Bill contains property addresses and thus serves as a proof of address.
Rental Income is taxable income. Therefore, rent agreement between the owner and the tenant for a particular house property serves as proof of income earned during the financial year.
Form 16A will be provided if TDS is deducted on your rental income. While filing your ITR you can claim this TDS using Form 16A.
Home loan repayment certificate/ Interest Certificate from the bank
This certificate consists of capital amount, repayment amount, the interest charged, and co-ownership details. This serves as proof for claiming a deduction on Interest Repayment and Principal Repayment. And reduces your net taxable house property income.
Municipal Tax Receipts
Municipal tax is paid on properties. Taxes paid on let out properties can bring down your net taxable rental income. Therefore, Municipal Tax receipts are required while calculating the income from house property.
A Self Occupied House Property is the one that you use as your own residence. This property can be in use by your children, spouse, and/or parents. Since there is no Income from such House Property, the gross annual value of this property is NIL (zero).
The assessee must be the owner of the properties. Identify the Gross annual value (GAV) of the house property. For self-occupied property, the GAV would be nil while for let out property the GAV will be the total rent received. Deduct municipal taxes paid by you (owner) towards the house property. Now you will realize the Net annual value of the house property. From NAV, deduct standard deduction of 30% and interest paid by you on a house loan. This will give you your Income from house property.
GAV- Municipal tax = NAV
NAV- Standard deduction- interest on borrowed capital= Income from house property.
Firstly, If your income falls under the taxable bracket you have to file your ITR without fail. Secondly, If you missed the deadline to file the ITR you can still file it but you may attract penalties. Moreover, If you don’t pay your taxes on time then if you are claiming any refunds they will get delayed. You will get lesser time to revise your ITR. and Lastly, You will have to pay interest on the taxable amount if you delay filing your ITR.
Every taxpayer whose income exceeds the Basic Exemption limit needs to file ITR. If your age is below 60 years and your income is more than rupees 2.5 lakh p.a then you are eligible to file your ITR.
Following are the basic documents required to file ITR:
-Bank Account Details
-Tax Payment Challan
-Original Return (if filed)