ITR Filing for Rental Income: How to Declare and Save Tax

Earning rent from a house, flat, or commercial space? It is important to make sure you’re filing your Income Tax Return (ITR) the right way.

Whether you have one property or several, reporting rental income correctly and claiming eligible deductions can help you avoid penalties and save big on taxes.

Don’t worry, Tax2win makes rental income ITR efiling simple, accurate, and stress-free. You can file it yourself or let our experts do it for you through eCA-assisted filing. Let’s break it down.

Which ITR Form to File for Rental Income?

ITR Form	Who Should Use It
ITR-1 (Sahaj)	If you earn rent from only one house property and your total income is up to ₹50 lakh
ITR-2	If you own multiple properties, earn capital gains, or have income over ₹50 lakh
ITR-3	If you earn rental income as part of a business or profession

How to Save Tax on Rental Income

Here are smart ways to reduce your tax liability:

Standard Deduction (30%): A flat 30% deduction is allowed on the net annual value of the property. With Tax2win’s self-filing software, the deduction is auto-applied.
Vacancy Loss: Deduction is allowed if the property was unoccupied during part of the year, and you could not earn rental income on it, you can claim this loss, thus reducing your rental income.
Municipal Taxes: Municipal taxes and property taxes paid during the year can be deducted from the gross rental income if they are paid by you and not the tenant.

ITR Filing Due Date

For FY 2024–25, the ITR filing due date is 15th September 2025.

Filing after the deadline may result in:

₹1,000 to ₹5,000 penalty under Section 234F
Interest on unpaid taxes
Loss of ability to carry forward rental losses

Why File ITR If You Have Rental Income?

To stay legally compliant
To claim TDS refunds (if tenant deducts tax)
To carry forward losses from home loan interest
To use ITR as proof for loans, visas, and credit cards
To maintain clean financial records

File ITR Easily with Tax2win

Whether your rental income is simple or complex, Tax2win offers two easy ways to file your ITR:

Self-ITR Filing Platform

File in just 4 minutes
Auto-selects the correct ITR form
Imports rent and tax data from Form 26AS, AIS, and TIS
Ideal for individuals with income from one or two properties

eCA-Assisted ITR Filing

Get your return filed by an expert CA
Best for those with multiple properties, home loans, or co-ownership
Our CAs handle everything from form selection to deduction planning and notice handling.