How to File ITR If You Have Rental Income

Owning a rental property in Delhi NCR is great, but it also means you must report rental income while filing your Income Tax Return (ITR). Many property owners find this part confusing.

At Avorix Realty, we regularly help homebuyers and investors in Noida, Gurgaon, and Greater Noida understand their tax responsibilities. Here’s a clear, step-by-step guide to make the process easier for you.

1. Which ITR Form Should You File?

• ITR-1 (Sahaj): Best if you have income from salary/pension + one house property.
• ITR-2: For multiple properties or income above ₹50 lakh.
• ITR-3: If you have business income along with rental income.

2. Step-by-Step Guide to Report Rental Income

Log in to the Income Tax e-filing portal → Select the right assessment year → Choose the correct ITR form → Fill in personal details → Go to “Income from House Property” section → Enter rent received, municipal taxes paid, and home loan interest (if any).

3. How to Calculate Taxable Rental Income

Gross Annual Value (actual rent or expected rent, whichever is higher) minus municipal taxes = Net Annual Value. Then deduct 30% standard deduction and home loan interest to arrive at taxable income.

4. Documents You’ll Need

• Rent agreement and rent receipts
• Bank statements showing rent credit
• Property tax payment proof
• Home loan interest certificate (if applicable)
• Form 16 and Form 26AS

5. Deductions You Can Claim

You can claim 30% standard deduction on Net Annual Value and full interest on home loan (subject to limits). Municipal taxes paid are also deductible.

If you have taken a home loan, use our EMI Calculator to better understand your cash flow.