File ITR-1 with Rental Income

1. PAN (Permanent Account Number): Enter your unique PAN issued by the Income Tax Department.
2. Father's Name: Mention the full name of your father.
3. Postal Address: Provide your residential address, including the house or building number, street name, city, state, and PIN code.
4. Mobile Number: Enter your active mobile phone number for communication purposes.
5. Email Address: Provide a valid email address to receive important notifications and correspondence.

Upload Form 16 for Income from Salaries

1. Name of the Employer: Enter the name of your employer who provides you with the salary income.
2. Type of Employer: Specify the type of employer, whether it is a government organization, private company, or any other entity.
3. Break-up of Income from Salary: Provide a detailed breakdown of your salary components, such as basic salary, allowances, bonuses, and any other earnings.
4. TDS on Salary: Report the amount of tax deducted at source (TDS) by your employer from your salary.

1. TAN of Employer: Enter the Tax Deduction and Collection Account Number (TAN) of your employer. TAN is a unique identification number allotted to entities deducting or collecting taxes.
2. Alternatively, you can upload your Form 16 PDF, which is a statement issued by your employer summarizing the income earned and taxes deducted. By uploading Form 16, the relevant details of your salary will be automatically populated in the appropriate sections.

Details of Other Income

1. Interest Income: Enter the details of any interest earned from sources such as bank deposits, fixed deposits, savings accounts, or any other interest-bearing instruments.
2. Dividend: Provide information regarding any dividends received from investments in shares or mutual funds

1. Any Other Income: Report any additional income that you have earned during the financial year which is not categorized as business income, professional income, or capital gains.

Steps on How to File ITR-1 with Rental Income

To file ITR-1 for individuals earning rental income, follow these steps:

• Enter personal information: Provide details like first name, middle name, last name, gender, date of birth, and PAN number.
• Click on 'Income Sources': Select the applicable source of income among Salary, Other Income, House Property, Capital Gain, or Business and Profession.
• Fill in income details: Depending on the chosen source of income, upload your Form 16 or manually enter employer details and taxable salary.
• Locate taxable income: Find the taxable income information in your Form 16 and enter it in the appropriate section.
• Enter salary TDS: Provide details of Tax Deducted at Source (TDS) on salary in the relevant section.
• Include other incomes: Enter any additional income from sources like gifts, fixed deposits, or bank accounts in the 'Other Income' tab.

An overview of the details required for different types of house properties when filing an income tax return. These details are necessary for accurately reporting the income and expenses related to house properties in your income tax return. 

1. Self-occupied Property
   1. Interest on Housing Loan Paid/Payable: This refers to the amount of interest that you have paid or are liable to pay on the housing loan taken for the self-occupied property. It is an important deduction that can be claimed against your taxable income.
   2.  Interest Paid during the Pre-construction Period: During the period when the property was under construction, you may have paid interest on the housing loan. This pre-construction period interest is eligible for deduction over subsequent years.
   3. Address of the House Property: Enter the complete address of the self-occupied property, including the house number, street name, city, and PIN code. 

1. Co-ownership Property
   1. Name, PAN, and Percentage of Share of Co-owners: If the property is co-owned, provide the names of the co-owners, their PAN (Permanent Account Number), and the percentage of ownership held by each co-owner. This information is required to allocate income and expenses accurately among the co-owners. 

1. Let-out Property
   1. Annual Rent Received/Receivable: Enter the total annual rental income received or receivable from the let-out property. This includes the rent paid by tenants for occupying the property.
   2.  House Tax or Municipal Tax Paid: Specify the amount of house tax or municipal tax paid for the let-out property during the financial year. This is an allowable expense that can be deducted from the rental income.
   3. Name and PAN of the Tenant: Provide the name and PAN of the tenant(s) who have rented the property. This helps in establishing the tenant's identity for tax purposes.
   4.  Interest Paid/Payable on Housing Loan: State the interest amount paid or payable on the housing loan taken for the let-out property. This interest can be claimed as a deduction against the rental income.
   5. Pre-construction Period Interest: If you paid any interest on the housing loan during the pre-construction period, mention the amount. Similar to self-occupied property, this interest can be claimed as a deduction over subsequent years.
   6.  Address of the Property and Details of Co-owners (if any): Enter the complete address of the let-out property and provide details of co-owners, including their names and PAN, if the property is jointly owned.
      
2. Deemed to be Let-out Property
   1. Estimated Annual Rent Receivable: Specify the estimated annual rental income that would be receivable if the property is deemed to be let-out. This is applicable when you own multiple properties but choose to self-occupy one while treating the others as let-out properties for taxation purposes.
3. Other details similar to a let-out property
   1.  Include any additional information required for the deemed to be let-out property, similar to what is needed for a regular let-out property.
      

The table given below provides a breakdown of the details required for different types of house properties when filing an income tax return

Exempt Incomes and Rent from Owned Property

Exempt incomes, if any, must also be declared. Incomes from interest on PPF, ULIPs, mutual funds, agricultural income, etc. must be included. In case you have availed of home loans on a property that you have occupied yourself, the interest on the loan must be declared in the document. In case you are earning rent from an owned property, details of the rental property must be added too. The overall rent received over the year must be mentioned, and if the property has any home loans, the interest amount paid towards the same must be specified along with the property’s address. Details of co-owners, if any, must also be mentioned.

Tax Deductions

The next step involves tax deductions. The total deductions claimed under Section 80C of the Income Tax Act with regards to mutual funds, LIC policies, etc. must be declared in the ‘Deductions’ tab. All other deductions that are applicable must also be declared in the space provided, and make sure that you do not miss out on any deductions as it can create legal complications later on.

Next, enter the ‘Taxes Paid’ tab, and your TDS entries will be imported by the website automatically from the Income Tax Department. In case tax was deposited using Challan 280 (self-assessment tax) by yourself, details regarding the same must be input.

Tax Benefits on Rental Income

Taxpayers who earn rental income from a property can avail themselves of certain tax benefits and deductions when filing their Income Tax Return (ITR). These deductions are aimed at reducing the tax liability associated with rental income. Here are some key tax benefits available for individuals with rental income:

1. Repayment of Loan: Taxpayers can claim a deduction on the principal amount repaid towards a home loan under Section 80C of the Income Tax Act. This deduction falls within the overall limit specified under Section 80C.

1. Interest on Home Loan: Deductions on the interest paid on a home loan can be claimed under Section 24 of the House Property. The maximum amount eligible for deduction is subject to certain prescribed limits.
2. Section 80EE: First-time home buyers can claim an additional deduction of up to Rs.50,000 on the interest paid on a home loan. However, this deduction is subject to specific conditions as prescribed under Section 80EE.
3. Section 80EEA: Another deduction available for first-time home buyers is under Section 80EEA. This allows for an additional deduction of up to Rs.1,50,000 on the interest paid on a home loan. Similar to Section 80EE, certain conditions must be fulfilled to claim this deduction.

TDS on Rent Income

If you receive rental income, the tenant is required to deduct TDS (Tax Deducted at Source) in certain situations. The following scenarios outline when TDS is applicable on rental income:

1. Section 194I: TDS is deducted at a rate of 10% if the annual rent amount exceeds Rs.2,40,000 for rent of land or building.
2. Section 194IB: TDS is deducted by an individual or Hindu Undivided Family (HUF) who is not liable for tax audit. TDS is applicable at a rate of 5% if the monthly rent amount exceeds Rs.50,000 or part thereof.

As the landlord, you will receive Form 16A from the tenant once the tenant files their TDS Return every quarter. It is important to note that you can view the TDS credits in Form 26AS on the income tax website. This allows you to verify the TDS deductions made by the tenant and claim the TDS credit while filing your Income Tax Return. 

Ensure that you keep track of the TDS deductions made by the tenant and reconcile them with the TDS credits reflected in your Form 26AS. This will help you accurately report your rental income and claim the appropriate TDS credit in your Income Tax Return.

Reviewing Returns

Once you have followed the aforementioned instructions and completed the process, you can review your returns by downloading the ITR PDF.