In this article, we will see what you can do when Home Loan Interest from Schedule HP not deducted from Total Tax in ITR3. Sometimes while filing ITR3, you might have noticed that after filling Schedule HP section and confirming the details, when you check the total tax computation then the home loan interest is not getting considered and deducted from total tax. You can still see total tax without the loan interest deduction. This might create a confusion in your mind as it created on mine. But don't worry, here we will understand the reason for that and how you can fix this. So let's get started.

House Loan Interest from Schedule HP not deducted from total tax in ITR3

Also Read: How to File ITR3 for Intraday, Short Term and Long Term Capital Gain

As you go through the Schedules in ITR3, you need to fill a Schedule called Schedule HP if you have any home loan going on for which you are paying interest. Once you fill the details and confirm, it should show like below.

Now if you go and check Computation of Total Income then you will notice that the Income from house property will show as 0.

This might led you to think what went wrong here. Well, there is nothing wrong you have done. Let me explain in detail. First of all you have not earned any income on that house so you won't see any positive(+) amount there. All you did is that just paid the Interest on your home loan which is taken as some negative(-) amount as might have noticed in Schedule HP section.

That negative amount which is actually the interest that you paid in your home loan won't show above, it will just set off as a loss in Schedule CYLA section as you can see below. This section is still not confirmed hence the interest amount is not considered in total tax computation.

Once you check all the details above and confirm then the loss which is nothing but the interest paid on home loan will be set off from the total income and it will reflect in the total tax computation. So now you can see everything will show correctly. Hope you got the problem and understood the solution.