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Income Tax Proof for Housing Loan

 
 

Repayment of Principal on Housing Loan

* Bank Certificate mentioning the principal repayment. It should clearly state the purpose as Housing Loan.
* Breakup of Interest and Principal should be clearly mentioned in the certificate.
* Documents evidencing the ownership of the property. Purchase deed, if property is purchased in current year.
* For existing property Electricity Bills / Property or Water taxes payment receipts of the latest available period of the current financial year.
* This benefit can be availed only for Principal amount.

Notes:
* In case of Joint Ownership, a No Objection Certificate (NOC) / Declaration from spouse or co-owner mentioning that he / she not claiming the benefit or to the extent of claiming for the relevant financial year.


Related Story: Income Tax Proof Submission- HRA and Rent Receipt

Loss on House Property (LOHP)


* Provisional Certificate for current Financial Year (breakup of Principal and Interest) for the amount due to be paid from the bank or Institution. It should clearly state the purpose as Housing Loan.
* Proof of ownership (Electricity Receipt/Property tax receipt/ Sale Deed). * Form of verification has to be attached in the prescribed format (refer below). Ensure that the values filled in this form matches with the amount claimed under this section.
* If the property is in a Joint Ownership and associate claiming more than his/her share should submit a declaration from other joint owner(s) (refer below).

Notes:

* Form of verification, Joint ownership and first property declaration forms are available for download.

* Property should be in the name of the associate to claim the tax benefit.

* Construction should be completed & occupied or let-out to claim the tax benefit.* Pre-EMI means interest paid up to the year in which construction of the property was completed. This interest can be claimed in five equal installments from the year in which the construction of the property was completed. Property completion certificate from the builder is mandatory to claim this amount.

* Construction agreement with the builder will not be accepted.

* Both HRA & Housing Loan (as self-occupied property) cannot be claimed if both properties are in the same city.

* Self-occupied cannot be claimed for location other than the location of actual residing by the employee.

* Receipt for the municipal tax paid during current financial year needs to be attached if the property is let-out and tax amount is updated.

* If Interest is claimed for more than one property, then Form of verification (FOV) and ownership proof for all the properties need to be attached for every such property. Form of Verification is like a self-declaration and hence all appropriate fields should be properly filled and duly signed by the associate.

 i. Format of declaration for Joint Ownership

 ii.Form of Verification

 
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