ITR
Which ITR to file with rent from several properties
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Facts
For AY 2026-27, ITR-1 allows income from up to two house properties. With three or more properties, or with house property loss to carry forward, you need ITR-2, or ITR-3 if you also have business income. Each property is shown separately.
Provisions and law
- Sec 22 (now Sec 20)Annual value of property you own is taxed under house property
- Sec 139(1) (now Sec 263(1))Return must be filed by the due date for the year
Analysis
Income from each flat is computed under Sec 22 (now Sec 20) of the Income-tax Act 1961, property by property. With three flats, ITR-1 is not allowed, so you file ITR-2 if your other income is salary, interest or capital gains. ITR-1 also cannot carry forward a house property loss, so even two properties with a loss to carry may need ITR-2. Picking the right form avoids a defective return notice.
Conclusion
- Count every house property you own, including vacant ones.
- Check for any loss to carry forward.
- Choose ITR-2, or ITR-3 if you have business income.
- Collect rent, tax and loan papers for each property.
A Savvy can do this for you
Return with rent from two or more properties and home loan interest, Sec 24(b)
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