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Itr1 or itr2 for one house property

meabhijit (Project Manager) (172 Points)

05 July 2012

Hi,

Please let me know which ITR form needs to be used as I have one house property which I have put on rent? I am a salaried person with only salary income per form 16.

ITR1 states: "[For Individuals having Income from Salary / Pension / Income from One House Property (excluding loss brought forward from previous years) /
Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses)]"

Thanks in advance.

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8 Replies

CA NEHA AGARWAL (Practise) (227 Points)
Replied 05 July 2012

u should file itr 2

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Ravikant (Accountax) (6285 Points)
Replied 05 July 2012

ITR 1 to be used as you have Salary+Income from 1 House Property +Other Source Income/Interest.

CA NEHA AGARWAL (Practise) (227 Points)
Replied 05 July 2012

i am giving u a link.u can verify from there.

https://incometaxindiaefiling.gov.in/portal/individual_huf.do

meabhijit (Project Manager) (172 Points)
Replied 05 July 2012

Thanks Ravikant, Neha.

ITR2 guildeines (inside form) in states that it needs to be filled for "more than one property" income and capital loss/gains forwarded etc. The forms state details when downnloaded and opened.

The confusion is since I have only ONE property and is on rent. I do not have any gain/losses. Is the deduction of 1.5Lakh for self occupied is also treated as income from one house property? This is because when I save the form, it asks if the property is self occupied (then deduction is 1.5Lakh). As I state no (property NOT self occupied), it validates the form proper and accepts more than 1.5L as deduction.

CA NEHA AGARWAL (Practise) (227 Points)
Replied 05 July 2012

CONDITION OF RS.1.5LACS INTEREST REPAYMENT IS APPLICABLE FOR SELF OCCUPIED AND NOT FOT LET OUT PROPERTY

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meabhijit (Project Manager) (172 Points)
Replied 05 July 2012

Yes thats correct.

ITR1 asks the user if the property is self occupied. If I stated No (ie. rented out) it allows deduction of more than 1.5Lakh. The form does get validated proper. So I am assuming that for my case ITR1 is ok (ONE house property rent income and no loss/gain forwarded). Few professionals state that I need to file ITR2 since income from property and hence the confusion.

meabhijit (Project Manager) (172 Points)
Replied 05 July 2012

Originally posted by : Ravikant
	ITR 1 to be used as you have Salary+Income from 1 House Property +Other Source Income/Interest.

Thanks Ravikant.

ITR1 when filled with more than 1.5Lakh as income from house property asks if the house is self occupied. If stated NO then the form is validated. So I had a confusion if the "income from house property" means deduction till 1.5Lakh only for an outstanding loan.

Can you please advice that for my situation: owning one house property and rented it out, I can still use ITR1 to indicate the income ie. loss from property?

Thanks in advance.

Ravikant (Accountax) (6285 Points)
Replied 06 July 2012

If the loss from house property is fully set-off against other heads in this year & no loss remains thereafter - Use ITR1.

If Loss from HP is still left to be Carry Forward to Next year for Set-off - Use ITR 2.

(A loss from house property can be set off against income from any other head in the same year. Any remaining loss can be carried forward for upto 8 years. In these subsequent years, this loss can be set off only against income from house property.)

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