Income Tax returns (ITR): Home loan from bank, employer?
Income Tax returns (ITR): Getting a home loan from a bank and employer sounds like an opportunity made in heaven.
Taxpayers shall be allowed to claim deduction of interest on home loans obtained from both bank and employer under section 24 of the Income Tax Act. Image source: PTI
This is provided the interest certificate is obtained from both sources of loan. Image source: Reuters
Principal repayment of loan from the bank shall be allowed as a deduction under section 80C of the Act. Image source: PTI
However, deduction of principal repayment of loan obtained from employer would depend whether your employer is covered under the prescribed category of employers provided by the Act. Image source: Reuters
Note: The aforesaid deduction in respect of interest and principle repayment can be claimed only up to the limits prescribed by the respective sections. (Chirag Nangia, Director, Nangia Advisors LLP). Image source: Reuters