Back to Markets
Stocks● Neutral
ITR-4 Deadline July 31: Rent Calculation for Self-Occupied Property
The Income-Tax Department notified ITR-4 for FY26. Taxpayers must compute rent from partly self-occupied property correctly or face scrutiny. Here's the formula.
Continue with
The Income-Tax Department has notified all ITR forms for assessment year 2026-27, covering financial year 2025-26. The Excel utility for ITR-4 (Sugam) is live on the e-filing portal. Taxpayers have until July 31 to file. The utility lets you prepare returns offline, generate a JSON file, and upload it after verification.
ITR-4 applies to resident individuals and HUFs with presumptive business income under sections 44AD, 44ADA, or 44AE, total income up to ₹50 lakh, agricultural income up to ₹5,000, and capital gains under section 112A up to ₹1.25 lakh. It also covers income from other sources such as savings account interest, fixed deposit interest, family pension, and interest on tax refunds.
Two changes this year affect how rent from house property is reported. The first involves a property that is partly self-occupied and partly let out. The official income-tax website says the property may consist of two or more independent units. Income from the let-out portion is computed separately. The self-occupied unit is treated as having nil income (subject to the ₹2 lakh home loan interest deduction under section 24(b), if applicable). The let-out portion is taxed on the actual rent received or the expected rent, whichever is higher, minus a 30% standard deduction and municipal taxes paid.