In this post, we will see how to enter details of House Property income in Saral Income Tax.
House property details in Income Tax Return include details of income/deductions received from two sources i.e. self-occupied property and let-out property.
Self-occupied property is the house which is used by the Assessee for his/her self-residence whereas Let-out property is the house which is given out on rent for residential purpose. Thus, the let-out property will also fetch income out of the rent received.
Below are the steps on how the house property details can be shown in Saral Income Tax for Income Tax Retune filing purpose.
To enter house property details, click on House property on the Tax Meter.
Note: If the ITR being filed is ITR-1, then only one option “House Property” will be displayed. In the case of other ITR, then the display will be as shown above.
Firstly we will see with Self Occupied House Property. Click on Self Occupied option on the Tax Meter and the entry screen will be displayed.
Start entering the details required. Fields shown in Blue and asterisk are mandatory.
- Address of Property: Enter the Residence Address.
- City: Select the residential city name from the dropdown
- State: Select the residential state name from the dropdown
- Country: Select the residential Country name from the dropdown
- Pincode: Enter residential Pincode.
- Zip Code: To be used in case the country is other than India.
If the address details given in Assessee master and property is same then click on Get Assessee Address to retrieve the address.
- Owner of the property: Select the owner type from the dropdown
- Self: The Property is owned by self
- Minor: The property is owned by a minor(below 18) who may be the children of the assessee
- Spouse: The Property is owned by Spouse
- Others: Other than the above.
- If Others, Please specify: If others are selected then the relation of the other to the assessee has to be provided
- Your percentage of share in the property: if the assessee is the sole owner, then enter 100 else enter the percentage of ownership. If the ownership percentage is reduced then the Co-owner button will be enabled.
- Co-owner: Provide the co-owner details for the property
- Gross Annual value: Is NIL for self-occupied property
- Interest paid on Borrowed Capital: Enter the annual interest paid on the housing loan taken for the particular property.
- Loan borrowed after 31/03/1999: If the housing loan is taken after the given date then select YES or else select No. This will affect the deduction applicable on the interest amount i.e. if before 31/03/1999 exemption is Rs. 30000 and if after 31/03/1999, exemption is Rs. 200000 (as on AY 2019-20).
With these entries, the Deduction u/s 24 and Income from SOP will be computed.
In case of any Pre-construction Interest to be claimed, click on Pre Construction Int. button. Here, enter the details required for claiming the Pre-construction interest.
Note: If the assessee wants to claim the 100% share of Pre-construction interest instead of share according to property percentage then enable the checkbox Apply 100% interest, instead of assessee %.
The value computed in this window will be considered for Income from SOP calculation.
Next, we shall see the computation of income from Let-out Property.
Enter the number of property under this section; accordingly, the columns below will be increased to enter the details of each property.
Next, click on “…” button against Property Details field and enter the required details.
The details to be entered in this window are the details of the property which is let-out for tenancy and is similar to those entered in the SOP.
Additional, if the property is rented out then the tenant details can be provided.
Next, the Gross Annual value of the property has to be entered. If the value is known, then it can be entered manually else enable the check box for auto computation of gross annual value. Now, click on the “+” button next to the Determination of Annual Value.
On entering the required amounts, the gross annual value will be derived.
Next, enter the Municipal Tax amount paid for the particular property and also the Interest amount paid on any house loan taken for the particular property.
Pre-construction Interest if any will be auto taken from the entry done in the relevant window (as explained in SOP)
On entering all the details, the Income generated from Let-out property will be calculated. This, in turn, will calculate the Income from House Property.
In case of ITR-1/ITR-4 where only one house property is allowed, the assessee has to select one out of the two types of property, if applicable.
If no property is to be declared, then select on NA.
This completes the process of House property income details entry in Saral Income Tax.