Income Tax Season: How to file ITR for rental property income | A step-by-step guide

Income Tax Season: The deadline for filing your Income Tax Return (ITR) is fast approaching i.e., July 31. Many employed individuals are wondering how to file their ITR under ITR-1, especially if they also earn rental income from renting out a property. Here is a complete guide on how to file your ITR-1.

Who should use the ITR-1 form?

If your income includes salary, rental income, and other sources like interest or dividends, you need to fill out the ITR-1 form. Additionally, if you have an agricultural income of less than Rs 5,000, you can include it under other sources. Most of the information for employed individuals will already be filled in the form, provided you have given that information to your company's HR.

Steps to fill the ITR-1 form:

1. Log in to the Income Tax Return Filing Portal:
   - Go to the portal and log in.
   
2. Navigate to File Income Tax Return:
   - Go to E-File > Income Tax Returns > File Income Tax Return.

3. Select the Assessment Year:
   - Choose the assessment year 2024-25, select the mode of filing as online, and click Continue.

4. Select Your Status:
   - Choose Individual and click Continue.

5. Choose the ITR-1 Form:
   - Select ITR-1 from the ITR Form dropdown menu.

6. Reason for Filing:
   - Specify why you are filing the income tax return.

7. Fill in the Required Details:
   - Complete all sections, including personal information, gross total income, total deductions, tax paid, and total tax liability.

8. Verify Your ITR:
   - In the final step, verify the ITR to complete the filing process. After verification, you will receive your refund within a few weeks.

How long does it take to receive a refund?

According to the Income Tax Department, it usually takes about 4-5 weeks for the income tax refund to be processed and credited to your account. Remember, you must e-verify your return to receive the refund. Many people forget to e-verify, which causes delays in receiving their refund.

What to do if the Refund fails?

If your refund is not credited within 4-5 weeks, check the refund status on the Income Tax Department website. If the status shows that the refund has failed, you can request a refund again through the website.