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Be Smart.Get RPA: Let's Make House Tax Filing Simple

Enjoy easy and smart house property income tax filing services with regular reminders, dashboards and expert advice from our Accounting & Taxation Team. You are guaranteed savings on tax filing with our direct support. We are friendly, so feel free to check us out!

List of documents required for House Property Income Tax

✅Aadhaar
✅Pan Card
✅Electricity bill, Gas bill, Telephone bill (Utility bills)
✅Rental agreement
✅Form 16A
✅Interest/Home loan repayment certificate from the bank
✅Property tax receipts(municipality tax)

What are the different types of house properties?

⦿ Self-Occupied House Property

A self-occupied house property is for one's own use. The taxpayer can live in it with their family – parents and/or spouse and children. A vacant house property is considered as self-occupied for the purpose of Income Tax. Before FY 2019-20, if a taxpayer has more than one self-occupied house property, only one is considered and treated as a self-occupied property, and the remaining are assumed to be let out. The selection of which property to choose as self-occupied is left to the taxpayer.

⦿ Let Out House Property

A house property which is rented for the whole or a part of the year is considered a let-out house property for income tax purposes.

⦿ Inherited Property

If you inherited a property from your parents, grandparents, etc. it can either be self occupied or rented out depending on what you want to do with it.

Explore our features and services.Tax smart.

Your one-stop accounting stop.

☑ Determine Gross Annual Value (GAV)

☑ Reduce Property Tax  

☑ Determine Net Annual Value (NAV)

☑ Reduce 30% of NAV towards standard deduction

☑ Reduce home loan interest

☑ Determine your Income from house property

☑ Compute loss from house property

The amount of deduction you can claim depends on the percentage of ownership that you have in the property.

The home loan deduction can only be claimed from the financial year in which the construction is completed.

Like borrower, the co-borrower can also claim these deductions.

If you want the taxes on your home loan to be taken out at work, you need to give them a certificate that contains information about how much of your home is yours, who the borrower is, and how much they are paying for things like interest. If you do not give this certificate to your employer, then you will have to pay taxes on your own or ask for a refund later.

If you are self-employed or freelancer, you don’t have to give these documents to the IT Department. You need them for your taxes. Keep them safe so that if the IT Department asks, you can show it to them.

➡ Tax Deduction on Home Loan Interest: Section 24

You can claim up to Rs 2 lakh on your home loan interest if you live in the house. This is true even if the house is vacant. If you rent it out, then you can deduct all the interest on your loan because it's no longer your home.

However, if your loan is less than Rs 2 lakhs, you can't use the lower interest deduction.

➡ Tax Deduction on Principal Repayment

If you are making payments on your loan, you can claim the repayment of up to Rs. 1,50,000. You will need to ask your lender for this information or check with them about your monthly instalments on the loan.

➡ Tax Deduction for First-Time Homeowners: Section 80EE

Recently, the Income Tax Act was modified. Now homeowners with only one house on the date of getting a loan can get up to Rs 50,000 as tax relief.

If you own more than one house, you need to file the ITR-2 form.

What is your ‘income from house property’ when you/your family live(s) in it?
If you live in your property for a whole year and it is not rented, then it is considered a self-occupied house. It has a gross annual value of zero. You don't make any money from your house property. Note: Since the annual value of a house you live in is worth zero rupees, if you claim a deduction on your mortgage interest, you will make a loss. You can use this loss to reduce your income from other heads.
How does the claim of deduction under Section 24 and Section 80C work if a home loan has been availed for 2 houses?
A taxpayer can claim a deduction for interest payments on a loan you took out for your house. If you have two houses, then the person can claim the interest payments on both of them, but they only get to do it up to Rs 2 lakhs each year. For 80C deductions, if someone pays back principal payments on their home loan in one year, then they can take this deduction for both houses within the overall cap of Rs 1.5 lakhs.
Can Income received as rent from subletting of house property will be taxed under “Income from House Property”?
No, because rental income from renting your home is taxed as "Income from House Property". That's different than money you earn from something else. So if someone else is making money off of renting out their place, like they're subletting the place and they're getting extra money for it, then that will be considered "Other Sources" and taxed differently.
I have received an unrealised rent which were arrears in earlier years. What will the tax treatment for such realisation of arrears of rent ?
If you have not been making any money from your house because the people living in it did not pay rent, you can charge them when they finally do. You will also need to include this income in the year of receipt. It does not matter if you are the owner of the property or not. And if they owe you a lot of money, then 30% is what you should deduct from their rent and charge to tax.

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