ITR 1 Or ITR 2

This query is : Resolved

Priya.M (Querist)
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09 July 2010 ITR 1 (new) can be used for INCOME from ONE house property (inclu loss).

But if a person has a self occupied property and a let out property, which form to use? ITR 1 or ITR 2?

Income from Self occ prop is NIL. So it doesnot contribute any income. So, should it be filed in ITR1?

Or, because assessee has more than one HP, ITR 2 should be used?

Pls. clarify. TIA.

Rahul Gupta

Rahul Gupta (Expert)
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09 July 2010 ITR 1 Return Form is to be used by an individual whose total income for the assessment year 2010-11 includes:-
(a) Income from Salary/ Pension; or
(b) Income from One House Property (excluding cases where loss is brought forward from previous years); or
(c) Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses)..........

ITR 1 Return Form should not be used by an individual whose total income for the assessment year 2010-11 includes,-
(a) Income from more than one house property; or
(b) Income from Winnings from lottery or income from Race horses; or
(c) Income under the head “Capital Gains”, which are not exempt from tax, e.g., short-term capital gains or long-term capital
gains from sale of house, plot, etc.; or
(d) Income from agriculture in excess of Rs. 5,000; or
(e) Income from Business or Profession.

http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/PDF/Ay2010-11/Instructions-1.pdf

ITR 2 Return Form is to be used by an individual or an Hindu Undivided Family whose total income for the assessment year
2010-11 includes:-
(a) Income from Salary / Pension; or
(b) Income from House Property; or
(c) Income from Capital Gains; or
(c) Income from Other Sources (including Winning from Lottery and Income from Race Horses)..

http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/PDF/Ay2010-11/Instructions-2.pdf

In view of the above Provisions, since you have 2 House Properties , ITR FORM 2 should be Used in Your Case.