How to file income tax return for a home loan
When it comes to ITR filing for a home loan, keep a few things in mind. You must file the Form ITR-1 Sahaj which applies in case you are a salaried professional repaying a home loan for a self-occupied property. You should be aware of the home loan tax benefits as well.
These include deductions up to Rs. 1.5 lakh on principal repayment and stamp duty and registration charges. You can also get deductions up to Rs. 2 lakhs on interest repaid annually under Section 24. This is majorly influenced by the home loan interest rate that you get.
Here are the people who are not eligible to use the ITR-1 form:
- Individuals whose total income exceeds Rs. 50 lakh
- Individuals whose total agricultural income exceeds Rs. 5000
- Individuals who have taxable capital gains
- Individuals who have income coming in from a business
- An individual whose income is supplemented by more than one house property
- If an individual is a director of a company
- If you have had investments in unlisted equity shares at any time during the financial year
- If an individual owns assets (which also includes a financial interest in and from an entity outside India) or if they are a resident, including signing authority in any account located outside India
- If an individual is a resident not ordinarily resident (RNOR) and non-resident
- If an individual possesses foreign assets or foreign income
- If an individual is assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person
Steps to file income tax return for a home loan
To file income tax return for home loans, follow these steps:
- Fill in personal details such as your name, Aadhaar number, and address.
- Enter your income chargeable under the head Salaries and enter this figure after checking Form 16. Tick the box for self-occupied property. Enter the interest payable on borrowed capital in the box. The annual value of self-occupied homes is NIL. Input income from other sources including interest from investments like fixed deposits. Then compute the Gross Total Income which is B1+B2+B3 = B4.
- Enter deductions applicable under Sections 80C, 80D, and others (C1) and add them up. Get the GTI/ B4 – C1 calculation done to arrive at C2 or total income.
- Based on this amount, i.e., C2, taxes will be worked out accordingly.
- You will have to furnish your bank account details.
Also know: How much ITR required for home loan?