Rent from 1 House Property to be disclosed in ITR 1 or ITR 2A?

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  1. prabhakar kulkarni

    prabhakar kulkarni New Member

    I need clarification on which ITR form to be used for AY 2016-17 . My source of income is Salary and House property. I am getting confused with the house property. I own two houses(one self occupied and second is let out) the Self occupied house is naturally exempt and I don't have any outstanding loan against the Self occupied house. The let out house I have loan and because of interest there is loss from House property.

    on the income tax siteI see only ITR 1 and ITR-4S at present and the option of ITR-2A is not available
    So do I need to file ITR-1 or ITR-2A ????
     
  2. Karan Batra

    Karan Batra Well-Known Member

    You can use ITR 1 as your income under head house property is arising only from 1 property
     
  3. SUNNY NARANG

    SUNNY NARANG Member

    Dear Prabakhar,

    You need to file ITR-2A. You can download ITR 2A from income tax website as per screenshot given below.

    upload_2016-7-18_10-6-49.png
     
  4. prabhakar kulkarni

    prabhakar kulkarni New Member

    there r two different views. Which one to take ?

    Sunny if I select AY 2016-17 then I don't see ITR-2A
     
  5. prabhakar kulkarni

    prabhakar kulkarni New Member

    Just also want to know the terminalogy used is "income from one house property" or "owning one house property"
    If it is income then SOP is exempt and hence I will have income from one letout property and I can use ITR-1
    Bit if the emphasis is on "owning" then ITR-2A.
    Please clarify this point
     
  6. Karan Batra

    Karan Batra Well-Known Member

    The emphasis is on the words "Income from House Property"

    As in the above mentioned case - Income is arising only from 1 house property - therefore ITR 1 is to be used.
     
  7. prabhakar kulkarni

    prabhakar kulkarni New Member

    thanks karan I think your view is ok. I had already filled the ITR -1 but somehow I was not getting convinced with what I was doing.
    thanks sunny for your views as well
     
  8. ZED

    ZED Well-Known Member

    With all due respects to @Karan Batra , I beg to differ.

    As per Rule 12 of the Income Tax rules ,one of the pre-condition for filing ITR-1 by assessee is that, he should not own more than one residential house property.

    Further, the words used are "Income from house property".
    It is pertinent to note that the words *Income from house property* are within inverted comma , and have not been used loosely. Even the charging section uses the phrase "Income from house property".
    This is because under the under the Income tax Act , we have a specific head of income called *Income from house property*.

    Therefore, even if a property is self occupied, it would still be exigible to the head "Income from house property* and hence even in this case we have Income from two house properties under the head "Income from house property". The courts have held that income include losses also ,and in case of a self occupied house property ,there can be losses due to deduction on account of interest u/s 24(b).


    If the words are intended to be used in a specific manner and in a specific context then we should use it in that manner and context ,and the legislature's intentions are clear when they have specifically put the words *Income from house property* within inverted comma.

    Thus wherever in the Act, the words are in inverted commas they have to be read , not as per common parlance, but as per the legislative intent.
    It is worthwhile to note that all the charging sections , be it S.15 in respect of *salaries*,or S. 22 in respect of *Income from house property* ,or S.28 in respect of *Profits and gains of business or profession* ,or S.56 in respect of *Income from other sources* , have used inverted commas whenever they are talking in respect of head of income.
    It is same when it is in Rules, we can see it in R.12 aswell, which has been cited below.



    Rule 12. (1) The return of income required to be furnished under sub-section (1) or sub- section (3) or sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) or sub-section (4E) or sub-section (4F) of section 139 or clause (i) of sub-section (1) of section 142 or sub-section (1) of section 148 or section 153A relating to the assessment year commencing on the 1st day of April,2016 shall,—

    (a) in the case of a person being an individual where the total income includes income chargeable to income-tax, under the head,—
    (i) "Salaries" or income in the nature of family pension as defined in the Explanation to clause (iia) of section 57; or
    (ii) "Income from house property", where assessee does not own more than one house property and does not have any brought forward loss under the head; or
    (iii) "Income from other sources", except winnings from lottery or income from race horses and does not have any loss under the head,
    be in Form SAHAJ (ITR-1) and be verified in the manner indicated therein:
     
  9. prabhakar kulkarni

    prabhakar kulkarni New Member

    thanks Prateek for your detailed clarification. looking at above the emphasis is on owning the house property and hence itr-2a seems appropriate form.
    But when I see on income tax site Quick e-file for AY 2016-17 I don't see ITR-2A. So what do we do ? download from AY 2015-16 or from our CA club site?

    Is there any platform through which we can convey our doubt to the Income Tax department to clarify this matter in a simple and straight forward manner so it can benefit others.
     
  10. ZED

    ZED Well-Known Member

    The quick file option is not available for ITR-2A. You will have to download the Excel or JAVA utility from the income tax website.
    http://incometaxindiaefiling.gov.in/

    Download it from there and then upload it.

    Kindly read the text in bold. There is no doubt.

    Rule 12. (1) The return of income required to be furnished under sub-section (1) or sub- section (3) or sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) or sub-section (4E)or sub-section (4F) of section 139 or clause (i) of sub-section (1) of section 142 or sub-section (1) of section 148 or section 153A relating to the assessment year commencing on the 1st day of April,2016 shall,—

    (a) in the case of a person being an individual where the total income includes income chargeable to income-tax, under the head,—
    (i) "Salaries" or income in the nature of family pension as defined in the Explanation to clause (iia) of section 57; or
    (ii) "Income from house property", where assessee does not own more than one house property and does not have any brought forward loss under the head; or
    (iii) "Income from other sources", except winnings from lottery or income from race horses and does not have any loss under the head,
    be in Form SAHAJ (ITR-1) and be verified in the manner indicated therein:
     
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