How do you File ITR-1 when you earn Rental Income?

The first step to file ITR-1 for those who earn rental income is to enter the personal information such as first name, middle name and last name, gender, and date of birth along with the PAN number.

After entering the requested information, the individual will have to click on ‘Income Sources’ and fill in their income details. To do so, you will have to choose Salary / Other Income / House Property / Capital Gain / Business and Profession. After selecting your source of income, you may either upload your Form 16 or manually enter details of your employer along with your taxable salary.

The third step will include locating the taxable income in your Form 16 and entering the salary TDS in the appropriate section. Next, other incomes such as those from gifts, fixed deposits, bank accounts, etc. must be entered in the ‘Other Income’ tab.

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 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.

Reviewing Returns:

Once you have followed the aforementioned instructions and completed the process, you can review your returns by either downloading the ClearTax word-report or the ITR PDF.

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