ITR -Liberation: What income tax return applies if I have revenue from home property?

When submitting your income tax return (ITR), is one of the most common questions that taxpayers have: What form should I use, and how can I maximize my tax saving? If you have home property income, you must be reported in your tax return and complete the right ITR form. How to choose the right ITR form depends on various factors such as your current occupation, annual income, number of properties owned and, among other things, in other sources such as shares and fixed deposit (FD). Here we are everything you need to know about reporting income from property, including the right ITR form to choose, how to report the income correctly and the general errors that taxpayers make regular during the submission of this section. What is revenue from home property? Home property income refers to the rental income earned by an individual from a property consisting of any building or land that is not used for any business or professional purpose. Such an income is taxable under the “income from home property” according to the income tax laws. However, it is important to note that a property can only be taxed under ‘income from home property’ if it is legally owned by the taxpayer and generates the property rental income or at least has the potential to generate revenue. The tax on the income of a rental property is calculated annually. Which ITR form to choose whether a salary tax owns only one property must fill itr-1. While for people who own and earn from various properties, they have to fill ITR-2, 3 or 4, depending on the composition of your income, Jain said. Here is a detailed explanation of who should choose for what form: ITR forms for taxpayers with single or multiple properties ITR form that can use key conditions that cannot use ITR-1 (SAHAJ) residents 1 home property salary/pension income> £ 50 Lakh ITR-2 Occupational Revenue ITR-3 Any individual and * Property income from business/occupational salary/pension also included those who are eligible for the rest 3 ITR forms ITR-4 (Sugam) Residents Individuals, * HUFS & firms under suspected tax (Art. £ 50 Lakh Source: Cleartax * The case, a property has two or more co-owners, each must submit a separate ITR to report their part of the income from the property. The income must only be explained in relation to their ownership share. For example, if two brothers jointly own a property in equal relationship and earn £ 1,20,000 annually as rental income, they will each report £ 60,000 in their respective ITRs. “Each of them can also claim the standard deduction of 30% on the rent,” Jain clarified. What to do if you have more than one home property? If a taxpayer owns multiple properties, the Income Tax Act enables them to treat any two homes as self -possessed. The remaining properties will be automatically regarded as “left out”, even if it is not actually hired. With an example, Balwant Jain, a tax and investment expert, said: “If you have a home in your current neighborhood and have another ancestral property on your native country, you can both classify self-possessed, which means that no tax is levied on their notive rental value.” However, if you own more than two homes, the additional businesses will be taxed, even if it is vacant: the idea of ​​the home, which is either the market value or the standard rental under local laws (which is lower), will be considered taxable. However, a taxpayer can still claim a standard deduction of 30% on that ideal rent under section 24 (a). It also applies to “left out” homes that actively bring in rent. If there is a home loan on such property, the owner can also be claimed by interest deduction. Common errors to submit an ITR can be a complicated process. People often miss important details, which make them feel at the verification process. “The most common mistake a taxpayer makes during the submission of ITR is missing when reporting the income of an entire property. For example, a person has a property in their native, but they leave it completely wrong,” Jain said. However, he also noted that there is less room to make a mistake if you choose the right form. If there is an error in your form, the income tax department will notify you and give you the opportunity to make the necessary corrections. Once the verification is done, the ITR processing takes everywhere between a few hours to 6 months, depending on the complexity of the composition of the income, Jain says.