Home Loan - How to show Home Loan in the Tax declaration form? How to get Tax benefits on the Home Loan? Hi All, I am from India, I am working at Hyderabad but I am from Bangalore, so I am buying an apartment at Bangalore at a price 29.5 lacs on Home loan. I am staying in a rented house in Hyderabad. My total CTC is 5.5 lacs per annum. Now can Claim Principal loan amount and EMI amount in the Tax declaration form for getting tax benefit?. [Possession of the apartment will be in the moth of August 2014] Kindly enlighten me regarding declaration of Home loan - both principal amount and EMI amount in the tax declaration form.
EMI contains repayment of principle amount and interest portion. For the first few years the interest portion will be more than the principle amount. Your home loan provider will give you the details for how much you have paid towards interest and how much for principle amount. Accordingly you have to show them in your tax returns. Interest portion has to be shown under the head Income from House Property and the principle repayment (Sec.80C) under "Deductions under chapter VI A" Read more about Home Loan Tax benefits in the website given below. http://taxguru.in/income-tax/faq-on-housing-loan-and-income-tax-benefit.html http://www.simpletaxindia.net/2008/02/house-loan-benefit-and-section-80c.html