ITR Filing Update For Joint Property Owners


Last week, on Thursday, the Income Tax Department reversed the order issued earlier that allowed joint owners of single house property to file an income tax return using simple Form-1(Sahaj) or Form-4(Sugam).


As per the order issued by the Income Tax Department, on 3rd January, taxpayers who own house property in joint ownership and those who paid ₹1 lakh in electricity bills in a year or incurred ₹2 lakh expense on foreign travel were debarred from filing their annual income return using the simple return forms.


The reversed order states that a joint owner of a property can file the ITR according to the seventh proviso to section 139 (1) of the Act through forms of ITR-1 or ITR-4. An ordinary resident individual whose total income does not exceed ₹50 lakh can file returns in ITR-1 Sahaj whereas, resident individuals, HUFs, and firms(other than LLP) who have a total income of up to ₹50 lakh can file it by using ITR-4 Sugam.


Individuals who have deposited more than ₹1 crore in the bank or have spent ₹2 lakh or ₹1 lakh on foreign travel or electricity are not eligible to file the return through ITR-1 form.


Notifications for ITR forms usually happen in April, but this time the Income Tax Department has notified it in January with two ITR forms ITR-1 and ITR-4. The changes made by the Income Tax Department has increased the hardships for joint owners in house property.