ITR Filing Update For Joint Property Owners

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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.