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ITR Documents Checklist: House Property Income

by | May 27, 2024 | Income Tax | 0 comments

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Important Keyword: Form 16A, Income from House Property, Income Source.

Document Checklist for Income from House Property

House property refers to any land or building, including the land attached to the building such as a courtyard, parking space, or compound. A taxpayer must report income earned from such property when filing their Income Tax Return (ITR). To accurately calculate and report this income, it is essential to maintain a checklist of supporting documents. The types of properties that fall under this category include:

  • Residential Houses/Flats
  • Shops
  • Office Space
  • Factory Sheds
  • Farmhouses
  • Godowns
  • Cinema Buildings
  • Workshop Buildings
  • Hotel Buildings

You can file ITR-1 if you have earned income from one property. However, you need to file ITR-2 if you own more than one property. You can file ITR online using ITR Utilities or through registered e-Return Intermediary (ERI)

House Property Income Documents Checklist

When filing your Income Tax Return (ITR) for income earned from house property, it is crucial to have all necessary documents ready. Here is a checklist of essential documents:

PAN

The Permanent Account Number (PAN) is an alphanumeric ID issued by the Income Tax Department (ITD). It is used to link all transactions of a taxpayer with their income. PAN is a vital document for filing ITR.

Aadhaar

Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI). It is mandatory for resident individuals to provide their Aadhaar details when filing ITR.

Utility Bill

Taxpayers must disclose the address of all properties they own while filing ITR. Utility bills, which include the property address, serve as proof of address. Examples include:

  • Electricity Bill
  • Water Bill
  • Gas Bill

Rent Agreement

Rental income is considered taxable income. The rent agreement between the property owner and the tenant serves as proof of the rental income earned during the financial year. Ensure to have a copy of:

  • The Rent Agreement
  • Rent Receipts (if applicable)

Additional Important Documents

Property Ownership Documents

Proof of ownership is essential for all properties. This includes:

  • Sale Deed
  • Title Deed
  • Purchase Agreement
  • Property Tax Receipts

Municipal Taxes Paid

Documents showing the payment of municipal taxes, which are deductible from rental income, include:

  • Property Tax Receipts
  • Municipal Tax Payment Receipts

Interest on Home Loan

If you have taken a home loan for the property, the interest paid on the loan is deductible. Required documents include:

  • Home Loan Statement
  • Interest Certificate from the Bank

Maintenance and Repair Bills

Expenses incurred for the maintenance and repair of the property are also deductible. Keep the following:

  • Maintenance Bills
  • Repair Receipts

Insurance Premium Receipts

Insurance premiums paid for the property are deductible. Ensure you have:

  • Insurance Premium Receipts

Filing ITR

By ensuring you have all these documents organized and accessible, you can accurately report your income from house property and claim all eligible deductions when filing your ITR. This thorough preparation helps in smooth and error-free tax filing.

Form 16A 

Form 16A will be provided if TDS is deducted on your rental income. While filing your ITR you can claim this TDS using Form 16A.

House Property Income Document - Form 16A

Home Loan Repayment Certificate/Interest Certificate from the Bank

This certificate provides details of the capital amount, repayment amount, interest charged, and co-ownership details. It serves as proof for claiming deductions on both interest repayment and principal repayment, reducing your net taxable house property income.

Municipal Tax Receipts

Municipal tax is paid on properties. Taxes paid on let-out properties can reduce your net taxable rental income. Therefore, municipal tax receipts are required while calculating the income from house property.

Read More: ITR Documents: Income from other sources

Web Stories: ITR Documents : Income from other sources

Official Income Tax Return filing website: https://incometaxindia.gov.in/

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