Homeowners and salaried taxpayers must secure their home loan interest certificates before the July 31 deadline to claim key deductions and avoid discrepancies with government tax records.
NEW DELHI — As the July 31, 2026 deadline for filing Income Tax Returns (ITR) for Financial Year 2025–26 (Assessment Year 2026–27) nears, individual taxpayers are gathering their investment proofs and financial statements. Among these documents, the interest certificate—commonly provided by banks and housing finance companies—plays a crucial role in validating tax deduction claims and ensuring compliance.
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Taxpayers filing returns under the Old Tax Regime frequently rely on home loan repayment benefits to optimize their tax liabilities. However, asserting these claims without accurate supporting documentation can trigger tax department inquiries during automated processing.
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Understanding the Importance of an Interest Certificate
A home loan interest certificate acts as official documentation detailing the exact repayment distribution over a given financial year. It breaks down the total equated monthly installments (EMIs) paid into two distinct categories:
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Principal Repayment: Eligible for tax deductions of up to ₹1.5 lakh per fiscal year under Section 80C.
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Interest Paid: Eligible for tax deductions of up to ₹2 lakh for self-occupied properties under Section 24(b).
Beyond serving as proof of expenditure, the interest certificate is essential for cross-referencing with the government’s Annual Information Statement (AIS). Financial institutions report interest earnings and home loan data directly to the Income Tax Department. Any mismatch between the figures declared in your ITR and the data reflected in your AIS or Form 26AS can result in automated discrepancy notices under Section 143(1).
Step-by-Step Guide: How to Download Your Interest Certificate
Taxpayers can easily download their home loan interest certificate directly through their lender’s online services:
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Log in to Net Banking: Access your primary bank or housing finance company’s internet banking portal or mobile app.
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Navigate to Services: Locate the “Loans,” “Service Requests,” or “Tax Certificates” section in the navigation menu.
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Select Home Loan Account: Choose the specific active home loan account and specify Financial Year 2025–26 (AY 2026–27).
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Download PDF: Generate and save the official provisional or actual interest certificate for your records.
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Essential Rules for AY 2026–27 Returns
The Income Tax Department has notified forms ITR-1 through ITR-7 for Assessment Year 2026–27. Taxpayers must select AY 2026–27 when filing returns for income earned between April 1, 2025, and March 31, 2026.
In a official advisory, tax authorities reminded citizens to thoroughly reconcile Form 16, the Annual Information Statement (AIS), and Form 26AS before submitting their returns. Missing the July 31 deadline carries significant consequences, including mandatory late fees under Section 234F, interest on outstanding dues, and the forfeiture of the right to carry forward certain capital and business losses.
FAQ
Can I claim a home loan interest deduction under the New Tax Regime?
No, tax deductions for interest paid on a home loan for a self-occupied property under Section 24(b) are not available under the New Tax Regime. They can only be claimed if you opt for the Old Tax Regime.
What happens if the interest amount in my certificate doesn’t match my AIS?
If there is a discrepancy, verify whether your lender reported data accurately. You can submit a feedback response directly on the Income Tax e-filing portal under the AIS tab to rectify third-party reporting errors.
What is the penalty for filing ITR after the July 31, 2026 deadline?
Filing a belated return attracts a late fee under Section 234F—₹1,000 for total income up to ₹5 lakh, and ₹5,000 for income exceeding ₹5 lakh—along with applicable interest on unpaid taxes.
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