ITR filing for AY 2023-24: Who can file ITR-1 for income from house property

As the Income Tax Return (ITR) filing deadline for Assessment Year 2023-24 is getting closer it’s important to know the right form you should use for e-filing as per your category.  The due date for filing ITR by the individual taxpayers, whose accounts don’t need tax audit, is July 31.

Form ITR-1, also known as ‘Sahaj’ for its easy filing process, is one of the most commonly used forms by individual taxpayers and you should know all the details regarding using this form for ITR filing for FY 2022-23.   

Who can user Form ITR-1 for Income Tax efiling?

Form ITR-1 can be filed by a Resident Individual taxpayer with a total income of up to Rs 50 lakh in a financial year. This includes income from salary, one-house property, and other sources such as bank interest, agricultural income (upto Rs 5,000), and family pension income.

What is the income from house property?

House property income, as the name suggests, is any income raised from renting out any property. It can be a house, building, office, or warehouse. The income from House Property will be accounted for when the property is owned by the taxpayer.

How is the income from house property calculated?

• To calculate the taxable income from any property, pay tax, and report it in the ITR filing, one needs to:
• Calculate the annual rent received.
• Deduct municipal taxes or property tax paid during the year and calculate the net annual value of the house property.
•  Any unrealised rent amount for a let-out property can also be deducted
• Any interest paid on the housing loan for the property can also be claimed as deductions.
• Deduct 30 percent of the annual rent received as a standard deduction. The resultant amount is the taxable income.

How to file Form ITR-1 for income from house property online?

Once you have calculated the taxable amount, file an ITR-1 with rental income from house property online by following the below-mentioned steps:

Step 1: Visit the official website of the income tax department at www.incometax.gov.in or the new income tax portal.

Step 2: Log in using your username (PAN) and password.

Step 3: Click on the e-file icon on the dashboard, go to Income Tax Return page

Step 4: On the next page, select the assessment year 2023–24 and click on Continue.

Step 5: Select the online mode of filing and click Proceed.

Step 6: Choose ITR-1 from the menu to file an ITR with rental income from house property.

Step 7: Once you have selected the ITR form, note the required documents and click Let's get started’.

Step 8: Select the checkboxes that are applicable to your ITR and click on ‘Continue'.

Step 9: Verify the details and edit (if needed), then enter remaining information related to your house property rental income. Click ‘Continue’

Step 10: After confirming the details, select ‘Gross Total Income’ and scroll to ‘Income from House Property.

Step 11: Select the type of house property as found in the drop-down menu and enter the details, such as total rent and municipal taxes paid, and click on ‘Add’.

Step 12: Confirm the details regarding income on the next page, enter deductions (if any), and confirm all the sections to know the tax liability.

Step 13: Pay the taxes in case of any tax liability then click on ‘Review Tax Return’.

Step 14: On landing on the ‘Proceed to Validation’ page, enter the required details and click on ‘Proceed to Verification’.

Step 15: Verify your tax return using any of the options and click on ‘Continue’.

At this point, the ITR has been successfully filed.