Where to show housing loan interest in ITR 1?

Wondering where to show housing loan interest in ITR 1. In India, the interest paid on a housing loan can be claimed as a deduction under Section 24(b) of the Income Tax Act. If you are filing your Income Tax Return (ITR) using the ITR 1 (Sahaj) form, here's how you can show the housing loan interest.

Where to Show Housing Loan Interest in ITR-1?

• Download or Access ITR 1 Form: You can download the form from the

  Income Tax Department’s e-filing portal

  or access it online.

• Navigate to ‘Income Details’ Section: This section captures all your income details including salary, house property, and other sources.

• Go to ‘Income from House Property’: Even if you have a self-occupied property, you need to fill out this section to claim the deduction.

• Enter the Details of Your House Property: Enter the annual value of the property. For a self-occupied property, this will be zero.

• Enter the Deduction for Housing Loan Interest: In the section for ‘Income from House Property’, you will find a field labeled ‘Interest payable on borrowed capital’.

• Enter the total interest paid on the housing loan during the financial year.

Example

Suppose you paid Rs. 1,80,000 as interest on your housing loan in the financial year. Here’s how you would fill it in ITR 1:

• Go to the ‘Income from House Property’ Section.

• Enter the Annual Value: If it is a self-occupied property, enter zero.

• Enter the Interest Amount: In the field for ‘Interest payable on borrowed capital’, enter Rs. 1,80,000.

For self-occupied properties, the maximum deduction allowed under Section 24(b) is Rs. 2 lakh per annum.

If the property is let out, there is no upper limit on the interest deduction. However, the total loss under the head 'Income from House Property' that can be set off against other heads of income is capped at Rs. 2 lakh. The remaining loss can be carried forward for up to 8 years.

Interest paid during the pre-construction period can be claimed in five equal installments starting from the year the construction is completed.

To claim the housing loan interest deduction in ITR 1, enter the interest amount under the ‘Income from House Property’ section. This deduction reduces your taxable income, thereby lowering your tax liability. 

Ensure all details are accurate and supported by relevant documents to avoid discrepancies. This is where to show housing loan interest in ITR 1.

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Under the Income Tax Act (Section 24), you can claim deduction on payment of interest for a housing loan if you are a taxable individual. The maximum deduction allowed is Rs. 2,00,000 and the property needs to be self-occupied. If you are a salaried individual who is repaying a housing loan for a self-occupied property, then you are required to fill the ITR-1 Sahaj form.

The 1st step to file your ITR-1 with a home loan is to fill in your personal details in the ‘Personal Info’ tap. These details include your name, address, gender, etc.

Next, you’ll have to go to the 2nd tab called ‘Income Sources’. Here you will have to fill in details like Salary, Capital Gain, etc.

After that, you’ll have to find your taxable income in Form 16 after which you’ll be required to fill in the Salary TDS amount as well as your employer’s details.

Next, enter details regarding your other incomes, like bank accounts, fixed deposits, gifts, etc. After that, you can mention your exempt incomes, like agricultural income, mutual funds, etc.

Now, if you have taken any housing loan on a property you’ve occupied yourself, the interest on the loan needs to be declared here. The property’s address along with co-owners, if any, needs to be specified.

After that, you just have to enter the overall deductions.

I hope now you know where to show interest on housing loan in ITR 1.

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This is all on where to show housing loan interest in ITR 1.