Itr1 or itr2 and taxable amount

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.

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

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:-

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