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Itr1 or itr2 and taxable amount

lalit (Asstt Mger) (38 Points)

28 July 2014

Dear All,

Currently I am leaving in rented house and my own house is rented to someone.

Please let me know, the income amount from rent is taxable income? For your knowledge the own house has home loan.

Also please let me know the ITR form required if rent is taxable.

Regards and Thanks in Advance

Lalit

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4 Replies

n k abhiram (CA Final , CS Final ) (629 Points)
Replied 28 July 2014

Rent received by you is taxable under the head House property

You can claim rent paid by you as HRA or under sec 80 G max 24000

If you show the house is let out i.e. rented you can claim any amt paid( as per bank certificate) as interest paid to the bank where as in case if you show it as self occupied you can claim maximum 150000/- in both case you can claim interest under sec 24 or under sec 80

you can file Form ITR -2

If you receive the rent by bank its better to show in rent in returns.

lalit (Asstt Mger) (38 Points)
Replied 28 July 2014

Dear Sir,

House rent is of Rs. 156000 per annume

From this can i deduct 150000 and rest 6000 will, be taxable right.

Please reply

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 28 July 2014

@ lalit.... from 156000 first 30% standard deduction will be allowed and then deduction of 150000 will be allowed. this way it computes to a loss of 40800. which can be set off from other income.

Adish Jain (Chartered Accountant) (36 Points)
Replied 14 August 2015

Hi Lalit,

In case of rent received i.e.own house which is let out-

Amount received as rent shall be taxable under head house property after allowing a standard deduction of 30%.
Interest on the loan taken for this house property shall be allowed on actual basis.
Therefore, Net Income will be Rs 109,200 {Rs.156000 less Rs. 46800 (30% of rent received),}
And, Taxable Income under head House Property will Rs. 109,200 less interest (on actual Basis).
If there is loss under house property i.e interest paid by you is more than Rs. 109,200 , then such loss (excess amount of interest) can be set-off with your income under head salary.

In case of rent paid by you-

You can claim HRA or deduction under section 80G.

In your case you are required to file ITR-1.

This Return Form is to be used by an individual whose total income for the assessment year 2015-16 includes:-

Income from Salary/ Pension; or
Income from One House Property (excluding cases where loss is brought Forward from previous years); or
Income from Other Sources (excluding Winning from Lottery and Income From Race Horses)
Agricultural income upto 5,000.