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List of documents required for House Property Income Tax
✅Aadhaar
✅Pan Card
✅Electricity bill, Gas bill, Telephone bill (Utility bills)
✅Rental agreement
✅Form 16A
✅Interest/Home loan repayment certificate from the bank
✅Property tax receipts(municipality tax)
What are the different types of house properties?
⦿ Self-Occupied House Property
A self-occupied house property is for one's own use. The taxpayer can
live in it with their family – parents and/or spouse and children. A
vacant house property is considered as self-occupied for the purpose of
Income Tax. Before FY 2019-20, if a taxpayer has more than one
self-occupied house property, only one is considered and treated as a
self-occupied property, and the remaining are assumed to be let out. The selection of which property to choose as self-occupied is left to the
taxpayer.
⦿ Let Out House Property
A house property which is rented for the whole or a part of the year is
considered a let-out house property for income tax purposes.
⦿ Inherited Property
If you inherited a property from your parents, grandparents, etc. it can
either be self occupied or rented out depending on what you want to do
with it.
☑ Determine Gross Annual Value (GAV)
☑ Reduce Property Tax
☑ Determine Net Annual Value (NAV)
☑ Reduce 30% of NAV towards standard deduction
☑ Reduce home loan interest
☑ Determine your Income from house property
☑ Compute loss from house property
The amount of deduction you can claim depends on the percentage of ownership that you have in the property.
The home loan deduction can only be claimed from the financial year in which the construction is completed.
Like borrower, the co-borrower can also claim these deductions.
If you want the taxes on your home loan to be taken out at work, you need to give them a certificate that contains information about how much of your home is yours, who the borrower is, and how much they are paying for things like interest. If you do not give this certificate to your employer, then you will have to pay taxes on your own or ask for a refund later.
If you are self-employed or freelancer, you don’t have to give these documents to the IT Department. You need them for your taxes. Keep them safe so that if the IT Department asks, you can show it to them.
➡ Tax Deduction on Home Loan Interest: Section 24
You can claim up to Rs 2 lakh on your home loan interest if you live in the house. This is true even if the house is vacant. If you rent it out, then you can deduct all the interest on your loan because it's no longer your home.
However, if your loan is less than Rs 2 lakhs, you can't use the lower interest deduction.
➡ Tax Deduction on Principal Repayment
If you are making payments on your loan, you can claim the repayment of up to Rs. 1,50,000. You will need to ask your lender for this information or check with them about your monthly instalments on the loan.
➡ Tax Deduction for First-Time Homeowners: Section 80EE
Recently, the Income Tax Act was modified. Now homeowners with only one house on the date of getting a loan can get up to Rs 50,000 as tax relief.
If you own more than one house, you need to file the ITR-2 form.
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