Extra Deduction of Rs. 50,000 on Home Loan Interest – Section 80EE

Table of Contents

Finance Act, 2016 has introduced deduction of interest payable on housing loan for first time home buyers taken from any financial institution over and above the deduction allowed under section 24b. Section 80EE has been amended for this purpose.

The deduction is allowed only to individuals, maximum limit of deduction is Rs. 50,000 and deduction is available from financial year 2016-17 onwards. Such deduction is allowed till such loan is repayed.

Deduction under this section is allowed only if following conditions are satisfied –

(i)the loan has been sanctioned by the financial institution between 1st April 2016 to 31st March 2017.

(ii)the amount of loan sanctioned for acquisition of the residential house property does not exceed Rs. 35 lakhs.

 (iii) the value of residential house property does not exceed Rs. 50 lakhs.

(iv) the assessee does not own any residential house property on the date of sanction of loan.

The deduction is allowed over and above deduction under section 24b.

Confused about complicated laws? Take our consultation services to get your issues solved . Click here to know more.

Read More Articles

Registration Under GST

Topic Covered in this Article Persons required to register compulsorily Documents Required for Registration Fees for Registration Voluntary Registration Time Limit for Registration Effective Date of Registration Requirements for Registration Can a person take more than one GSTIN Things that

Read Article »

GST on Import

Article 269A of constitution mandates that import of goods or services in India is considered as Inter-state trade. Therefore, import of goods or services is considered as interstate supply and is liable for payment of IGST. IGST on the import

Read Article »

Subscribe

We will send updates relating to GST only

(No spam, you can unsubscribe anytime)