Finotree

Section 80EEA History The existing provisions of Section 80EE will allow a deduction of up to Rs 50,000 for the interest paid for first time home buyers after securing a loan from a financial institution between April 1, 2016, and March 31, 2017. The government of India to help and boost the real estate sector has decided to extend the benefit for fiscal 2019 – 2020. The deduction can be claimed by the loan borrowers until they repay the housing loan. Eligible Deduction Amount  - Individuals who are paying housing loan can claim for deduction on interest payment of up to Rs 1,50,000 per annum under Section 80EEA. This deduction is over and above the deduction of Rs 2,00,000 per annum for interest amount payments which is available under Section 24 of the Income Tax Act. Individuals are eligible to claim a total deduction of Rs 3,50,000 per annum for interest on the home loan if they meet the prerequisites of Section 80EEA of the Income Tax Act. Eligibility Criteria  - ...

Housing Loan Benefit History Of section 80EE FY 2013-14 and FY 2014-15 Section 80EE  was designed for the first time in the FY 2013-14 for individual taxpayers to avail tax deduction on interest on home loans. At that time, the maximum deduction that could be claimed was Rs. 1,00,000. " This tax benefit was available for only two years - FY 2013-14 and FY 2014-15 ." The Section was reintroduced on FY 2016-17, and the quantum of deduction was changed to Rs. 50,000 for interest paid towards home loan. From 2015-16 Onwards Section 80EE  - Deduction on Home Loan Interest Tax deduction under Section 80EE of the Income Tax Act 1961, can be claimed by first-time home buyers for the amount they pay as interest on home loan. The maximum deduction that can be claimed under this section is Rs. 50,000 during a financial year. " The amount can be claimed over and beyond the deduction of Section 24 and Section 80C ," which are Rs. 2,00,000 and Rs. 1,50,000, ...