How to File ITR-1 with Rental Income?

Form ITR-1 allows individual residents in India to file an income tax return for income up to Rs 50 lakh. You can report income from salary, one house property, long term capital gains under section 112A up to Rs. 1.25 lakhs, other sources and agricultural income up to Rs 5,000. 

Therefore, if you have only rental income, you can file your taxes under ITR-1. In this article, we will tell you the procedure for filing your income tax return with rental income through ITR-1.

Details of an Individual Taxpayer

Enter your complete name, gender, date of birth, PAN and father’s name. You need to enter their postal address, mobile number, and e-mail address as well.

Upload Form 16 for Income from Salaries

Declare your ‘income sources’. You must report the income from the salary. The details include:

• Name of the employer
• Type of employer
• Break-up of income from salary
• TDS on salary
• TAN of employer

Alternatively, you can upload your Form 16 PDF. The details of your salary get auto-populated.

Details of Other Income

Enter the details of your interest income, dividend and any other income other than income from business or profession or capital gains.

Details of House Property

In the case of a self-occupied property, mention details about:

• Interest on housing loan paid/payable on housing loan on the property.
• Interest paid during the pre-construction period.
• Address of the house property.
• For a co-ownership, the name, PAN and percentage of share of co-owners in the property.

You can specify the details of the co-owners as below: In the case of a property let out on rent, you can furnish the details below:

• Annual rent received/receivable.
• House tax, or municipal tax paid.
• Name of the tenant and PAN of the tenant.
• Interest paid/payable on housing loan on the property.
• Pre-construction period interest.
• Address of the property and details of co-owners if any.
• Details of the Tenant, such as Name and PAN/TAN. The TAN of the tenant must be mentioned if the TDS is made under section 194-IB.

In the case of a deemed to be let-out property, mention the estimated annual rent receivable and other details similar to a let-out property.

Details of Tax Deductions

• Details of Municipal taxes paid
• Details of Co-ownership such as Name, PAN and share, so that you will be taxed only your share.
• Details of interest on housing loan up to Rs. 2 lakhs.
• Additional deduction of Rs.1.5 lakhs under section 80EEA, subject to the conditions.
• A standard deduction of 30% on Rental income (after deducting municipal taxes) is provided for maintenance.
• No additional deduction related to sweeping, painting, or renovation is allowed as expenses against rental income.

Steps to File ITR-1 with Rental Income 

Step 1: Login to your Cleartax account and click on ‘Start Filing’.

Step 2: Fill in all your personal details like name, address and other details will appear here. You can expand each section and review these details. You also have the option to edit them, if required. 

Step 3: Add the rental income by navigating to Income Source > Rental income or House property > Property you have given on rent.

Consider to fill the below details

• Address of the property
• Co-ownership details such as Name, PAN and share of the co-owner
• Tenant Details such Name, PAN/TAN and Aadhaar. Here TAN is mandatory of the TDS is made by the tenant us 194-IB
• Fill in Rental income and property tax paid details.
• Fill in the interest on housing loan (pre-construction and post construction component separately).

Step 4: Fill in the other details such as income from salary, capital gains, business, dividend, interest details, mention the deductions details, taxes paid. 

Step 5: Once you update with all the documents. Proceed to Tax Summary page to View Summary, Compare, and Switch Tax Regimes and confirm the details. You can also view and download your tax report.

Step 6: To proceed, click on ‘File tax’. Check the box and ‘Submit Declaration’. After your return is submitted, e-verify your return to complete the filing process. If the ITR is not e-verified within 30 days then it will be considered as invalid ITR. 

Details of Taxes Paid and Tax Filing

• Mention the TDS on salary income
• Details of TDS on income other than salary
• TDS on sale of immovable property
• TCS collected from you
• Advance tax paid
• Self-assessment tax paid

After you submit the details of your income and tax/TDS, you can proceed to e-filing your income tax return.