diff --git a/news/2 Fixes/1461.md b/news/2 Fixes/1461.md
new file mode 100644
index 000000000000..1c8c770456a9
--- /dev/null
+++ b/news/2 Fixes/1461.md	
@@ -0,0 +1 @@
+Fix indentation when function contains type hints.
diff --git a/src/client/extension.ts b/src/client/extension.ts
index 05a15fa5db55..8d1cbb428e6c 100644
--- a/src/client/extension.ts
+++ b/src/client/extension.ts
@@ -103,10 +103,6 @@ export async function activate(context: ExtensionContext) {
     // tslint:disable-next-line:no-non-null-assertion
     languages.setLanguageConfiguration(PYTHON_LANGUAGE, {
         onEnterRules: [
-            {
-                beforeText: /^\s*(?:def|class|for|if|elif|else|while|try|with|finally|except)\b.*:\s*\S+/,
-                action: { indentAction: IndentAction.None }
-            },
             {
                 beforeText: /^\s*(?:def|class|for|if|elif|else|while|try|with|finally|except|async)\b.*:\s*/,
                 action: { indentAction: IndentAction.Indent }