Your queries: Income tax – Can claim interest deduction on home loan when filing return

By Chirag Nangia

I bought an apartment 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 did not deduct Rs 1.50 lakh under 80EEA for the first purchase of an apartment/house. How can I get the deduction now?
—Bijaya Mahakur

Under Section 80EEA, an additional deduction from interest payment of Rs 1.5 lakh (after exhausting the limit under Section 24(b)) is granted to first-time home buyers, for loans contracted for affordable houses worth up to Rs 45 lakh. This deduction can be claimed until you have repaid your home loan. Under Section 80EE, an additional deduction from the interest payment of Rs 50,000 (after exhausting the limit under Section 24(b) is allowed for first time home buyers for the value of the property up to Rs 50 lakh and loan amount up to Rs 35 lakh.If a buyer claims deductions under Section 80EE, he cannot claim deductions under Section 80EEE. deductions above can be claimed while filing a tax return.Any excess TDS over final tax payable will be refunded after the return has been processed.

Although NRI income is not taxable, if I deposit ITR 2 when my income is more than Rs 2.5 lakh, I have to show salary first followed by exemption. How can I do this when filing returns?
—Raja

It has been held in various court decisions that the mere collection of salary by NRI into his Indian NRE account for services performed outside India is not taxable in India. In addition, interest earned by NRIs on this NRE account is also non-taxable. It should be noted that NRIs earning income in the form of salary and interest, exceeding Rs 2.5 lakh are required to provide an income statement in ITR-2 form. However, NRIs can claim benefits under tax treaties and claim refunds if TDS is deducted from their income. For this, you need to reconcile the TDS credit and the withholding tax as indicated in the 26AS form.

I ininvested in the stock market and achieve short and long-term capital gains. Which ITR form should I submit?
-Suresh Kumar

Individuals with income under “capital gains” cannot file ITR-1 and must report details of their income in ITR-2.

The screenwriter is the director, Nangia Andersen India. Send your questions to [email protected]

Bernadine J. Perkins