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How to E-File ITR 1 (SAHAJ) with House Property Loan?

Updated on: Jun 14th, 2024

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4 min read

Do you have a house property loan and income below Rs.50 lakhs consisting of salary, income only from one house property and income from other sources? Then let us teach you how to file ITR 1 using the ClearTax e-filing service.

Before that, let us first discuss the applicability of the ITR 1 income tax return.

ITR 1 Form is for a resident individual whose total income for the year includes:

  • Income from Salary/ Pension; or
  • Income from One House Property (excluding cases where loss is brought forward from previous years); or
  • Income from Other Sources (excluding Winning from the Lottery and Income from Race Horses)
  • Agricultural income up to Rs.5000.

Who Cannot Use ITR 1 Form?

  • Total income exceeding Rs.50 lakh
  • Agricultural income exceeding Rs 5000
  • If you have taxable capital gains
  • If you have income from business or profession
  • If you have income from more than one house property
  • If you are a director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • Owning assets (including financial interest in any entity) outside India if you are a resident, including signing authority in any account located outside India
  • If you are a resident not ordinarily resident (RNOR) and non-resident
  • Having foreign assets or foreign income
  • If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person.

Tax Benefits on ITR Filing for Home Loan Under Different Sections

Income Tax Section

Deduction Amount

Section 24

Rs.2 lakh p.a. towards the interest component of the housing loan repayment.

Section 80C

Rs 1.5 lakh p.a. towards the principal component of the housing loan repayment.

Section 80EEA

Rs 1,50,000 p.a. towards the interest component of the housing loan repayment.

Required Documents for Claiming Housing Loan Interest Deduction

  • Property Ownership Details: You must own the property to claim the deduction. If you are a co-owner, determine your share, as the deduction amount depends on your ownership percentage.
  • Completion of Construction or Purchase Date – The deduction on housing loan interest can be claimed starting from the year in which the construction of the property is completed. If you have incurred interest during the pre-construction period, you can also claim it. Pre-construction interest can be availed by dividing it into five equal installments, commencing from either the year of the purchase or the year when construction is completed.
  • Borrower Details: The housing loan should be in your name to qualify for the deduction. Alternatively, you can be a co-borrower on the loan.
  • Bank Certificate: Obtain a certificate from the bank that provides the details of the interest and principal amounts paid.
  • Municipal Taxes Paid: Keep in mind that municipal taxes can be deducted from house property income only if they have been paid within the same year.

Step by Step Guide to Filing ITR 1 

Step 1

Start by entering your permanent information like Name, Date of Birth and PAN number

Step 2

 Click on Income Sources and input your income details from Salaries, you can choose to upload your Form 16, so we can populate your information directly.

— OR you can enter your taxable salary and details of your employer manually.

Step 3

Locate your Taxable income in your Form 16.

Step 4

Enter the Salary TDS amount and details of the employer — If you changed jobs during the year, add another salary

Step 5

Next, enter your other incomes like Interest from Bank Accounts, Fixed Deposits, Gifts and others.

Step 6

Next, declare the exempt incomes, if any, like Mutual Funds, ULIP’s, interest from PPF account and agriculture income.

Step 7

If you have a housing loan on a self-occupied House Property, declare interest on the loan, enter the address of the house and specify co-owners, if any.

Step 8

Enter the total of your Section 80C deductions (LIC, Mutual Funds, etc).

Declare all other deductions which are applicable. Check out the “More Deductions” tab. Don’t miss a deduction. 

Read:Guide on Section 80 Deductions

Step 9

ClearTax can automatically import your TDS entries from Income Tax Department.

If you deposited tax via Challan 280 (self assessment tax) yourself, add details regarding it.

Step 10

— Woohoo, ITS DONE!

— You can review for return by downloading ITR PDF or ClearTax word-report.

— Click on the large green button and your return shall be submitted to Income Tax Department.

Related Income Tax Articles

How to file ITR?

Which ITR to file? A complete guide to understanding the correct ITR form for you. 

How to file ITR on the government portal?

Login to new Income Tax Department Portal – Login & Registration Guide

Income Tax e-Filing Guide

Income Tax Slab & Rate for FY 2019-20

What is Form 16? 

Check your Income Tax Refund Status Online

How to link PAN with aadhar on new e-filing portal

Frequently Asked Questions

How to claim housing loan interest in ITR-1?

You can claim deductions for both the interest on a home loan and principal repayment under Section 80C of the Income Tax Act by submitting the required documents to your employer.

How do I claim a deduction under Section 24 in ITR-1?

Under Section 24 of the Income Tax Act, homeowners can avail of a deduction of up to Rs. 2 lakh on the interest paid on their home loan, provided that the owner or their family reside in the house property. However, if the house is rented out, the entire interest is eligible for deduction.

Should I include all my bank accounts in ITR-1?

You are required to provide details of all your current and savings accounts in ITR-1. However, if any of your accounts have been dormant for more than three years, there is no need to mention them.

How can I claim a deduction for both home loan interest and principal repayment?

You can claim a deduction for both under section 80C of the Income Tax Act by properly identifying and documenting your principal repayments.

How much is the tax benefit on a home loan?

For self-occupied homes, tax benefit of up to Rs.2 lakh can be claimed under section 24(b) and Rs.1.5 lakh under section 80C of the Income Tax Act. For first time buyers, under section 80EEA up to Rs.1.5 lakh tax benefit can be availed.

What are the tax deductions on joint home loans?

Tax benefits can be availed by both borrowers from their taxable income individually in the case of joint home loans which includes Rs.2 lakh of interest and Rs.1.5 lakh on the principal amount.

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

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