Home |Tax returns filing | I am an NRI settled in Canada (with permanent residency) since the last two years. I had no Indian income in Financial Year FY 2018-2019 but had a home loan (self-occupied) before leaving. The home loan got over in October 2018. Do I get any deduction for home loan interest payment for the period April-October 2018 under Section 24B? Do I get any deductions under Section 80C for principal amount paid in FY19? Do I get a deduction for that? I am a little confused as there is no income. Will these tax deductions result in any refund?

I am an NRI settled in Canada (with permanent residency) since the last two years. I had no Indian income in Financial Year FY 2018-2019 but had a home loan (self-occupied) before leaving. The home loan got over in October 2018. Do I get any deduction for home loan interest payment for the period April-October 2018 under Section 24B? Do I get any deductions under Section 80C for principal amount paid in FY19? Do I get a deduction for that? I am a little confused as there is no income. Will these tax deductions result in any refund?

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Sanjeev Sanjeev
Answered on February 05,2020

You can report the interest payments made for your self-occupied house property in your income tax return. You can claim a maximum deduction of  INR 2 lakh under Section 24(b) towards interest paid on a home loan for a self-occupied property. This will result in loss under the head “house property" in your income tax return. This loss can be carried forward to eight financial years and can be set off in future if there is any income under the head house property in the eight following years. Deductions are reduced from taxable income for the purpose of calculation of income tax. Since there is no taxable income, deductions will not lead to a refund situation for you. Refund arises when tax was deposited but no tax was due from you. If no tax is paid by you or deducted from any of your incomes, no refund is due to you.

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