I earn a salary and also get some rental income from a house property. While filing my Income Tax Return in India, can I use ITR-1, or do I need to choose a different form because of the rental income?
That’s a thoughtful question many salaried people with a bit of rental income wonder if they can stick with the simplest form, ITR-1, or whether they have to shift to a more detailed one.
When You Can Use ITR-1 (Sahaj):
• ITR-1 is allowed only if you have income from one house property, and it must be self-occupied or left vacant.
• The moment you have rental income, ITR-1 is not applicable.
When You Need to Use ITR-2:
• If you are receiving rent from a house property, you cannot file ITR-1.
• Instead, you need to file ITR-2, where you can report “Income from House Property” along with your salary income.
• This form allows you to show rent received, municipal taxes paid, and claim deductions like 30% standard deduction and home loan interest (if applicable).
Example for Clarity :
Case 1: Salary + one self-occupied house (no rent) → ITR-1 is fine.
Case 2: Salary + house property given on rent → Use ITR-2.
For official guidance, you can check the Income Tax Department website: