Your queries: Income Tax- Can claim home loan interest deduction when filing return

Any excess of TDS over the final tax liability shall be refunded after processing of the return.

Your queries: Income Tax- Can claim home loan interest deduction when filing return
The above deductions can be claimed while furnishing return of income.

By Chirag Nangia

I bought a flat for Rs 35 lakh in February last year with a bank loan. In FY22, I paid principal of Rs 1,33,951 and interest of Rs 1,70,049. My employer has not deducted Rs 1.50 lakh under 80EEA for the first-time purchase of a flat/house. How do I get the deduction now?
—Bijaya Mahakur

Under Section 80EEA, additional interest payment deduction of Rs 1.5 lakh (after exhausting the limit under Section 24(b)) is given to first-time home buyers, for loans taken for affordable homes worth up to Rs 45 lakh. This deduction can be claimed till you have repaid your home loan. Under Section 80EE, additional interest payment deduction of Rs 50,000 (after exhausting the limit under Section 24(b) is allowed to first-time home buyers for property value up to Rs 50 lakh and loan amount of up to Rs 35 lakh. If a buyer is claiming deductions under Section 80EE, he cannot claim deductions under Section 80EEA. The above deductions can be claimed while furnishing return of income. Any excess of TDS over the final tax liability shall be refunded after processing of the return.

While NRI income is not taxable, if I file ITR 2 when my income is more than Rs 2.5 lakh then I need to show salary first followed by exemption. How do I do that while filing returns?
—Raja

It has been held in various judicial pronouncements that mere receipt of salary by NRI in his Indian NRE account for services rendered outside India is not taxable in India. Further, interest earned by NRIs on such NRE account is tax-free as well. It is to be noted that NRIs earning income in the form of salary and interest, exceeding Rs 2.5 lakh are required to furnish return of income in ITR-2 form. However, NRIs can claim benefits under tax treaties and claim refunds if TDS is deducted on their income. For this, you need to reconcile TDS credit and advance tax as reflected in Form 26AS.

I invest in the stock market and get short-term and long-term capital gains. Which ITR form should I file?
—Suresh Kumar

Individuals having income under the head ‘capital gains’, cannot file ITR-1 and must report particulars of income in ITR-2.

The writer is director, Nangia Andersen India. Send your queries to fepersonalfinance@expressindia.com

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