Residential Property ITR Query

Hi, 

The house building has 4 floors. 1 floor is sold out and the remaining floor is with single owner which is basically 3 builder floor in one house only and 2 floor are let out for rent and on the remaining one the owner is residing. 

So for income tax purpose will that person be required to fill out ITR 1 or ITR 2 ?

Regards.

Replies (7)
Quick Summary
This discussion clarifies which Income Tax Return (ITR) form is required for a residential property with multiple floors. The consensus is that if an owner possesses more than one house property, even if they are different floors within the same building, ITR-2 is generally the appropriate form. Factors like how the sale deed defines each floor and how rental agreements are structured can influence this decision.

He is required to fill out ITR-2 since he is owning more than one house property. 

Thanks for the reply.

If the house is on single plot but 3 different floors are considered different property ? Its a case in which builder takes 1 floor and the remaining three are with the owner.  

@ kunnal - a lot of people treat three floors as one house only. But account for the following possibilities before taking a tax position. 

- does the sale deed accounts for each floor as independent houses or one house

- when you are renting out, is the floor rented out is considered an independent house or only part of the house being sold.

 

Ok Thanks for your reply.

Query to my existing one if it considered as a single house but separate rent is coming for 2 floors as agreement mentioning the floor which is rented out. which ITR to be used ITR 1 or ITR 2 for reporting ?

ideally you should file in ITR-2.

Ok Thanks Nikhil 

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