When it comes to filing the ITR for Home Loan tax exemptions, knowing the different deductions applicable to you as a borrower is important. The most important deductions for Home Loans are under Section 24(B) and 80(C) for interest payments and principal repayment, respectively. There are other exemptions too that fall under Section 80EE. To gain the maximum out of your Income Tax rebates, it is imperative you know where to claim these deductions.
The process of filing your ITR for deductions on your Home Loan is simple. Keep the necessary documents handy to complete the process swiftly. Once you are prepared, here are the steps to follow.
1: Gather the required documents
These include:
- Property ownership documents
- Certificate of purchase or construction
- Home Loan certificate with interest and principal details
- Municipal taxes receipt
- Financial and personal documents of the taxpayer
2: Submit the documents to your employer
- Inform the employer to make TDS adjustments
- This compliance is not mandatory for freelancers or self-employed Home Loan borrowers
3: Calculate your Home Loan deductions
- Separate deductions are allowed on self-occupied and let-out properties
- Consult with a CA or your financial advisor before making your maximum deduction claim
4: Claim the actual deductions
- Once you have completed all the necessary steps, visit the official Income Tax website to follow their instructions and complete your Home Loan tax submission
- Download your tax statement for verification
An important reason to file tax returns on time is that it is a key requirement for credit facilities such as a Home Loan. In fact, you can easily avail of a Bajaj Housing Finance Home Loan if you have all the required documentation available. The loan has many features like basic eligibility terms, quick processing and more, allowing you to borrow based on your need and comfort.
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