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Taxation on more than one property

pradeep (engineer) (31 Points)

25 June 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

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4 Replies

CA Puja Sharma (Chartered Accountant) (5010 Points)
Replied 25 June 2022

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.

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CA Raj Doshi (Practising CA) (8924 Points)
Replied 25 June 2022

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 (27579 Points)
Replied 26 June 2022

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