How to show loss from house property in ITR 2?

When you file ITR‑2 in India and incur a loss under the head “Income from House Property”, proper reporting and set‑off treatment are crucial. So how to show loss from house property in ITR 2? Such losses arise when deductions like home loan interest (Section 24) and standard deduction exceed the taxable value of the property, resulting in a negative figure.

How to Report Loss from House Property in ITR 2?

1. Navigate to the “Income from House Property” schedule.

2. Enter the Gross Annual Value, municipal taxes, allowable standard deduction (30% of NAV), and the interest payable on borrowed capital.

3. The system will compute the resultant income or loss under house property. If it’s a loss, it will show as a negative amount under the head.

Under the old tax regime, you can set off loss from house property against other heads of income, salary, business, capital gains up to Rs. 2 lakh in the same year. Excess loss beyond that can be carried forward for up to eight assessment years, but only to be set off against future house property income.

In contrast, under the new tax regime, loss from house property cannot be set off against any other head of income. It can neither be carried forward nor adjusted elsewhere; no inter-head set-off is permitted.

Provide details of each property separately whether self‑occupied or let out. Declare interest paid, municipal taxes, gross or deemed rent, and standard deduction. The form auto‑computes the resulting loss. Based on your chosen tax regime, the system applies set‑off or carry-forward logic.

Get Help in Tax Assessment and Reporting Loss from House Property by Experts at NoBroker 

While filing your tax you will come across a category ‘Loss from House Property’ to show loss from house property. There may be many many reasons for the loss. Before explaining how to show loss from house property in ITR 2, let me tell you the method to calculate the loss.

Gross Annual Value (Rent is not received and nil in case the property is occupied by owner)

Less: Municipal or other local taxes paid on the property.

= Net Annual Value

Less: Deductions u/s 24

Statutory deduction at 30 percent of the Net Annual Value (NAV)

Interest paid on home loan

= Income or loss under the head House Property

How to show loss from house property in ITR 2?

To claim loss in the current year you will need to provide relevant documents to support your loss. Besides, you will need a copy of ITR V pertaining to the previous year showing the loss. 

It is mandatory to show a loss if you are incurring a loss and expect the loss to be offset in future years. 

1. Visit the Income tax e-filing portal at:

1. Log in to the e-filing portal and enter your user ID (PAN), Password, and Captcha code and click ‘Login’.

2. Tap on the ‘e-file’ menu and hit on the ‘Income Tax Return’ link.

3. Chooses  ‘Assessment Year’, ITR Form Number’.

4. Tap on ‘Filing Type’ as ‘Original/Revised Return‘.

5. Choose ‘Submission Mode’ as ‘Prepare and Submit Online’ and hit on continue.

6. Fill out the application form by reading the instructions carefully.

7. Choose the correct verification option in the ‘Taxes Paid and Verification’ tab.

8. And submit your tax.

I hope you know how to show loss from house property in ITR 2 now.

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