e-File ITR-1 with House Property Loan

Locating Taxable Income

Next, you will have to locate your taxable income in Form 16 after which you will have to enter the Salary TDS amount along with the details of your employer. In case you have shifted hobs during the course of the year, the salary from both employers must be mentioned in the appropriate section.

Income from Other Sources

Next, you will have to input information regarding your other incomes, such as gifts, fixed deposits, bank accounts, etc., following which your exempt incomes, if any, must also be mentioned, such as interest from PPF account, ULIPs, mutual funds, agricultural income, etc.

Interest on Home Loan

In case you have availed a home loan on a property you have occupied yourself, the interest on the loan must be declared. The address of the property along with co-owners, if any, must also be mentioned.

Overall Deductions

Next, you will have to input the overall deductions you are eligible for under Section 80C, like mutual funds, LIC, etc. All other deductions that are applicable must be declared in the ‘More Deductions’ tab. Make sure that you enter all deductions accurately as failure to do so can result in problems later on.

Import your TDS entries automatically from the Income Tax Department. In case you deposited tax through Challan 280 (self-assessment tax) yourself, details regarding the same must be added as well.

Reviewing Returns

Once you have completed the aforementioned steps, you can review your return by simply downloading the ITR PDF. Your returns will be submitted to the Income Tax Department once you press the big green button.

Who Should File ITR-1 

ITR-1 is designed for individuals with a relatively simpler tax situation and income below ₹50 lakhs. It is suitable for individuals whose income is derived from the following sources: 

1. Income from one-house property 
2. Income from other sources 

If you are filing a joint income tax return that includes the income of a spouse or a minor, you can use ITR-1 only if the mentioned eligibility criteria are met. 

Who Cannot File ITR-1  on House Property

Individuals who fall under the following criteria cannot use the ITR 1 Form: 

1. If their total income exceeds Rs. 50 lakh. 
2. If they have income from business or profession. 
3. If they have income from more than one house property. 
4. If they own assets (including financial interest in any entity) outside India or hold signing authority in any account located outside India while being a resident. 
5. If they are a resident but not ordinarily resident and non-resident. 

Steps to File ITR-1 for Home Loan

1. Select the Appropriate ITR Form
   1. Choose the correct ITR form based on your employment status, whether salaried, non-salaried, or professional. Visit the Income Tax website at www.incometaxindia.gov.in and navigate to Forms/Downloads to find the seven types of ITR forms available. Review the details and instructions provided to determine the form that suits your requirements.
       - For example, if you are a salaried individual with an income not exceeding Rs. 50,00,000, you can file Form ITR-1.
2. Provide Personal Details
   1. Complete the personal details section (Part A) of the ITR form. Enter information such as your name, date of birth, PAN card number, 12-digit Aadhar card number, email address, mobile number, and other required details.
3. Report Total Income and Interest Paid on Borrowed Capital
   1. Under the Salaries/Gross Total Income section, input your income details. Verify the figures with your Form 16 and identify the income chargeable as per Form 16. In the case of filing ITR-1, include the interest paid on the borrowed capital for a housing loan.
      If you own a self-occupied property, enter the interest paid or payable. Refer to the loan repayment certificate for this information. However, ensure that the interest amount does not exceed Rs. 2 lakh.
4.  Declare Deductions
   1. Provide details of deductions you are eligible for based on the provisions of the Income Tax Act and the instructions provided in the ITR form. Total up the deductions applicable to you and include them in the relevant section.

Note: The remaining steps for filing the ITR, such as computing tax liability, paying taxes (if applicable), and submitting the form, may vary depending on the specific circumstances. 

What are the Reasons for Filing ITR

Filing income tax returns (ITR) is essential in India for the following reasons:

1. Meeting Income Threshold: If your gross annual income exceeds the specified basic exemption limit, you are required to file ITR. The exemption limits vary based on age categories.
2. Claiming Tax Refunds: If you are eligible for an income tax refund, filing ITR is necessary to claim the refund from the tax department.
3. Foreign Assets or Income: If you have earned income from or invested in foreign assets during the financial year, filing ITR is mandatory. 
4. Visa or Loan Applications: When applying for a visa or loan, ITR serves as a crucial document for providing income proof.
5. Company or Firm Tax Returns: Regardless of profit or loss, companies and firms are obligated to file ITR.
6. Carrying Forward Losses: If you have incurred business/professional losses or losses under the capital gains head, filing ITR before the due date is necessary to carry forward these losses to future years.

Additionally, even if your income is below the basic exemption limit, you must file ITR if you meet any of the following conditions:

1. Deposited more than Rs. 1 crore in one or more current bank accounts or more than Rs. 50 lakh in one or more savings bank accounts.
2. Spent more than Rs. 2 lakh on foreign travel.
3. Incurred electricity expenditure exceeding Rs. 1 lakh during the previous year.
4. TDS or TCS deducted/collected is more than Rs. 25,000 (or Rs. 50,000 for senior citizens).
5. Business turnover exceeds Rs. 60 lakh.
6. Professional income exceeds Rs. 10 lakh.

Complying with these requirements ensures that you fulfil your legal obligations and enables the government to monitor income and tax compliance effectively.