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How To File ITR For Home Loan


Under the scheme “Housing for All by 2022”, which led to the launch of Pradhan Mantri Awaas Yojana (PMAY), the government, in terms of achieving that step, has introduced Section 80EEA under the Income Tax Act, 1961. Under this Section, first time flat buyers can now claim deductions on the loans availed by them for housing from April 1st 2019 to March 31st 2022, subject to certain conditions being met. It is thus crucial that to avail of the benefits under this regime, especially being a first-time homebuyer, you need to file an ITR for a home loan. However, while filing an ITR for the home loan, you must be careful and bear a few things in mind. These are the steps you need to follow:


Step 1: Filing of ITR Form:

Seven types of ITR forms must be filed based on your criteria, i.e., whether you are a salaried person, non-salaried person or a professional. These forms are given on the homepage of the Income Tax website under Forms/Downloads at www.incometaxindia.gov.in. E.g., if you are a salaried person having income not more than Rs. 50,00,000/- you are eligible to file Form ITR-1. Details of each form, along with instructions, are given in the Forms/Downloads board, and you are required to identify the relevant form that you need to fill.

Step 2: Fill out Personal Details:

Under Part A of the ITR form, which requires you to fill in general information, you will have to submit your details such as your name, Date of Birth, PAN Card number, 12-digit Aadhar Card number, mobile number, email address, etc.

Step 3: Enter your Total Income & interest paid on borrowed capital:

Under the head of Salaries/Gross Total Income, enter your details of income. Enter this amount after checking with Form 16 and also locate your income chargeable as per Form 16. For example, while filing ITR-1, enter the interest paid on borrowed capital (for housing loan) and in the case of self-occupied property, enter the interest paid/payable. You will get that in the certificate of repayment of the loan. However, this amount should not exceed more than Rs. 2 lakhs.

Step 4: Enter details of deductions:

Under the head of total deductions, enter the total deductions applicable to you based upon your eligibility as per the criteria laid down under provisions of the Income Tax Act and the instructions set out in the ITR form, which is to be filed and total them up.


Filing ITRs promptly ensures creditworthiness, and it becomes easier for the borrower to avail future home loans since it is considered one of the most essential documents that access and determines your income. Not only is the filing of ITR necessary and proves to help avail a future home loan, but it also proves to help procure tax benefits and deductions on the home loan availed by you.  The tax benefits on filing ITR for home loan under the various provisions of Income Tax are as under:



All homebuyers can claim deduction towards the home loan interest with a limit of Rs. 2 lakh. In the case of let out property, i.e., the interest is waived off.


All homebuyers can claim deduction towards the principal repayment or stamp duty and registration charges of a let out or self-occupied property, however, with an overall limit of Rs. 1.5 lakh.


First-time homebuyers can claim an additional deduction of Rs. 50,000 only after exhausting the limit under Section 24. However, this benefit can be availed only in loans sanctioned between April 1st 2016, March 31st, 2017 and the loan approved must be Rs. 35 lakhs or less.


The government has re-introduced Section 80EEA in the 2019 Union Budget, under which, first-time homebuyers after exhausting their limit under Section 24, can now claim deductions regarding home loans taken for affordable housing with a limit of Rs. 1.50 lakhs. This additional tax benefit can be claimed regarding loans availed from April 1st, 2019, to March 31st, 2022. However, to avail of this benefit, the stamp duty value of the property should not exceed Rs 45 lakh. A homebuyer availing benefit under Section 80EE cannot avail benefit under Section 80EEA.


It is, therefore, crucial that while filling out the ITR forms, you are diligent and cautious. That would help you get the tax benefits for a home loan. It is also necessary to understand the advantages of these benefits that will help purchase a home. So, if you are a first-time homebuyer, you can easily find recourse to benefits under the new regime found under Section 80EE and 80EAA.


ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  Please note, filing of tax related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein mentioned are solely for informational and educational purpose. Investments in securities market are subject to market risks, read all the related documents carefully before investing.

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