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ITR 1 or ITR 2

n k abhiram (CA Final , CS Final ) (629 Points)

15 July 2011

Hi members.

One of our Clients is salaried employee and is having 4 storied residential building. In the ground floor our client is staying, rest of the 3 residential houses has been let out . Our clinets wants to file the returns, Which ITR form to be used now ? I feel ITR 1(Sahaj) should be used, since there may be differrent floors but the House Property is only One . ITR 1 (Sahaj) states if there is a salary inocme and income from one house property . Whether I am right ?

Please suggest Whether to Use ITR 1 or ITR 2

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2 Replies

Alpana (Consultant) (91 Points)
Replied 15 July 2011

Although there is one building, the fact that it is divided into more than one flats which are distinctly lettable, would imply that there are more than one house properties. More so if all the 3 flats are let out to different parties then it makes all the more sense to use ITR 2 since the details of the tenants would not be captured in ITR 1. So, to ensure better disclosure its advisable to use ITR 2.