How to File ITR For Home Loan

When it comes to filing ITR for home loan tax exemptions, knowing the different deductions applicable to you as a borrower is important. The most important deductions under home loan in ITR filing relate to Section 24 (B) and 80 (C) for interest payments and principal repayment, respectively, for a given financial year. There are other exemptions too under Section 80EE and 80EEA. Knowing this information is important to filling the ITR form as there is a section pertaining to the deductions applicable on your income.

For a complete breakdown of the process to file your income tax return for loan purposes, is illustrated below.

The process is very simple. The first step to learning how to file ITR for home loan deductions is to keep the necessary documents on hand so as to complete the process swiftly. Once you’re prepared, here are the steps to follow.

Step 1:Gather the required documents

These include:

• Property ownership details
• Date of purchase or completion of construction of the property
• Bank certificate mentioning principal and interest details
• Payment of municipal taxes
• Details of borrower

Step 2:Submit the document to the employer

• Inform the employer to make TDS adjustments
• This compliance is not mandatory for freelancers or self-employed home loan borrowers

Step 3:Calculate the interest deductions applicable

• There is limited deduction for self-occupied as well as let-out properties so make sure you know the rules pertaining to this. This is capped at Rs.2 lakh.

Step 4:Claim deduction on principal repayment

• Principal repayments allow you to claim interest on home loan deduction under 80 (C) with total claims capped at Rs.1.50 lakh.

An important reason to file tax returns on time is because it is a key requirement for credit facilities such as a home loan. In fact, you can easily avail a Bajaj Housing Finance Home Loan Bajaj Housing Finance Home Loan if you have all the required documentation available. The loan is characterised by many features like basic eligibility terms, high LTV, quick processing and more that allows you to borrow based on your need and comfort. Moreover, you can opt for a tenor that ranges up to 30 years and make the most of a competitive interest rate. To get started, apply online for a hassle-free borrowing experience.