Answer

ITR

House property and interest income in ITR-4

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  1. Facts

    ITR-4 allows income from one house property and other sources such as interest, along with presumptive business income. Two or more house properties need ITR-3.

  2. Provisions and law

    • Sec 44AD (now Sec 58)Presumptive business income at 6% of digital and 8% of other receipts for eligible businesses
    • Sec 24(a) (now Sec 22(1)(a))Standard deduction of 30% on rental income
    • Sec 56 (now Sec 92)Income from other sources

  3. Analysis

    If rent is ₹2,40,000 and municipal tax ₹10,000, net annual value is ₹2,30,000 and the 30% standard deduction leaves ₹1,61,000 as house property income. FD interest of ₹80,000 goes under other sources. If you own a second let-out flat, switch to ITR-3. Brought forward house property losses also need ITR-3.

  4. Conclusion

    1. Confirm you have only one house property
    2. Compute rental income after municipal tax and 30% deduction
    3. Add interest under other sources
    4. Use ITR-3 if a second property or losses exist

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Presumptive income tax return, ITR-4 (Sugam), Sec 58 (old 44AD, 44ADA, 44AE)

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