Home Loan Interest Certificate: What It Shows and How to Use

A home loan interest certificate is the lender's statement of how much interest and principal you paid in a tax year. It is the document behind two old-regime deductions: interest up to ₹2 lakh on a self-occupied house (old Section 24(b), now Section 22) and principal within the ₹1.5 lakh limit (old Section 80C, now Section 123). You give the provisional version to your employer during the year and use the final version when filing your return. Rules are as of October 2026, FY 2026-27.

Why the certificate matters

Section 22 of the Income-tax Act, 2025 allows the higher ₹2 lakh interest cap for a self-occupied house only if certain conditions are met, one of which is a certificate from the lender showing the interest payable on the loan. In practice, your employer will ask for it before reducing TDS, and a tax officer will ask for it if your claim is questioned. Without it, your claim is hard to support.

What the certificate shows

Formats differ between banks and housing finance companies, but most certificates carry the same fields.

Check that the tax year is correct (FY 2026-27 is 1 April 2026 to 31 March 2027) and that the figures are split between interest and principal. A plain EMI total is not enough.

Provisional vs final certificate

Provisional certificate: Issued from the start of the tax year, based on your EMI schedule. Employers ask for it when you submit your declaration (Form 124, which replaced Form 12BB) so they can reduce monthly TDS.

Final certificate: Issued after 31 March, with actual figures. If you prepaid part of the loan, changed the rate, or the bank reset your EMI after a repo rate change, the final figures can differ from the provisional ones.

If the final interest is higher than what your employer used, claim the extra in your return; you will get the difference as a refund. If it is lower, report the lower figure; using the provisional number in your return can lead to a mismatch and a tax demand.

How to download it

1. Net banking or app: log in, open the home loan account, and look for "interest certificate", "tax certificate" or "statements". Select the tax year and download the PDF.
2. Lender's website: many housing finance companies have a customer portal that asks for your loan account number and registered mobile number.
3. Email or customer care: request it from the registered email address; it usually arrives within a few working days.
4. Branch: useful for older loans, closed loans, or when you need a certificate for several past years.

For a loan you have transferred to another lender during the year, get certificates from both lenders and add up the interest and principal. Interest on the new loan remains deductible because it was used to repay the original home loan. Our guide to home loan balance transfer covers the switch.

Worked example: a joint loan certificate

Meera and Sanjay co-own their self-occupied flat 60:40 and are co-borrowers. Each pays EMIs in proportion to ownership. Their final certificate for FY 2026-27 shows:

• Total EMIs paid: ₹4,20,000
• Interest: ₹3,10,000
• Principal: ₹1,10,000

Both are in the old regime and have room left in their Section 123 limits.

Together they save ₹1,13,568. If only Meera had claimed, her interest would have been capped at ₹2 lakh, and ₹1,10,000 of interest would have gone unclaimed. Splitting by ownership uses both caps. See joint home loan for the rules on who counts as a co-owner.

To see the effect on your total tax, enter your figures in our income tax calculator.

Using it with your employer

• Submit the provisional certificate with Form 124 early in the year, along with possession proof if the house was completed recently.
• Choose the old regime with your employer if you want the deduction applied in TDS. Under the default new regime, the employer will ignore the certificate for a self-occupied house.
• Many employers ask for the final or updated certificate in January or February. If you miss it, claim the deduction when filing.

The employer's TDS certificate (Form 130, which replaced Form 16) should show the house property loss the employer allowed. Our guide to TDS on salary explains how employers apply declarations.

Using it in your return

1. Under income from house property, choose self-occupied or let-out for the house.
2. Enter the interest from the final certificate, plus any one-fifth instalment of pre-construction interest. For a self-occupied house, the total is capped at ₹2 lakh in the old regime.
3. Enter the principal under Section 123, together with your other items, up to ₹1.5 lakh.
4. For a joint loan, enter only your share and keep a note of how you split it.
5. Keep the certificate, sale deed and possession letter for at least the period the tax department can reopen your return.

Common errors to check

• Certificate for the wrong year, or for calendar year instead of tax year.
• Interest and principal shown as one figure.
• Only one borrower's name, when the loan is joint.
• Pre-EMI interest mixed into the current year's interest.
• Top-up loan interest included without proof that the money went into the house.

For the full set of home loan limits, see our pillar on home loan tax benefits.

Key takeaways

• The interest certificate splits your EMIs into interest (Section 22) and principal (Section 123) for the tax year.
• Use the provisional certificate for your employer and the final certificate for your return.
• Download it from net banking, the lender's portal, email or the branch; get one from each lender after a balance transfer.
• Joint borrowers split the figures by ownership and contribution; in the example this saved ₹1,13,568.
• You do not attach it to the ITR, but keep it on record.