Where to fill home loan interest in ITR 1? most of the taxpayer (mostly first-time users) really are confused.
Income tax department grant relief for the taxpayers especially for those like salaried employees, self-employed or a small business person having a home loan.
The home loan consists of two parts.
- Principal amount
- Intrest amount
The best part is you can get exemption on both the category. [In simple words if you are paying your home loan EMI on a monthly basis] you will have to pay less tax because you have paid your EMI which includes both Principal + interest amount.
Before simplifying your doubt Where to Show Housing loan Interest in ITR-1, I want you to understand some more details:
Is interest on home loan tax deductible? Yes, it is, the Intrest amount you paid is deducted from your gross income and tax is calculated after deduction of interest amount.
Home Loan Tax Benefit
Getting your dream home is always a priority for every Indian, Government of India encourages people to get rid of their principal and interest amount while disclosing in ITR1 form. The question is How much tax benefit on home loan, there are few sections to avail home loan tax benefit.
- Interest Paid on Housing Loan
- Principal repayment
- Stamp Duty and Registration Charges deduction
- Additional deduction under section 80EE
- 80EEA-additional deduction on home loan interest
How can I fill my home loan interest in ITR?
So let’s understand where to Show Housing loan Interest in ITR-1. As we have already understood there are three sections – Section 24, Section 80EE & section 80EEA which allow the taxpayer to penetrate interest paid on home loan under exemption head.
Section 80EEA – The snapshot will be shared with you as soon as ITR 1 form for FY 2019-2020 introduced by the income tax department.
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