Taxation on more than one property

Tax queries 126 views 4 replies

pradeep

engineer

31 Points Joined May 2022

I had one house in which I live (also had a housing loan over it) and another house that is inherited(now I am the owner of this property too) from my parents(no one lives here from the time it is inherited to me, it is vacant). Both the houses are in a different cities.

1) So how to file tax. Do I have to show both the property or can only show the property in which I actually live?

2) If to pay on both the property, then can it be considered self-occupied? And how to calculate total tax iability in that case

3) which ITR form to consider (ITR-1, ITR-2, ITR-3 or ITR-4).

Please give answers in detail.

Thanks in advance

Replies (4)

CA Puja Sharma

Chartered Accountant

5010 Points Joined March 2020

You do not have to report any of the properties while filing your Income Tax return until and unless you have rental income from these properties or you have a home loan interest deduction to be claimed u/s 24.

Your total tax liability will depend upon your total income earned during the year.

The type of form will also depend upon your source of income.

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

If you want you can declare both the houses as self occupied. This is because your ITR form number will change. I advise clients to report. However, I haven't seen such practice in the industry as mentioned by CA Puja Sharma ji.

sabyasachi mukherjee

28018 Points Joined May 2017

If it's self occupied then, are u deriving income from house property. If it's on let out house property are u deriving income. IF NO.So whats the tax liability
nil