Deduction under section 80EE can be claimed by first-time home buyers for the amount they pay as interest on home loan. Taxpayer can claim a deduction of up to Rs. 50,000 per FY as per Section 80EE.This deduction can be claimed over and above the deduction of Section 24 which is Rs. 2,00,000.
Eligibility:
The deduction under this section available only to Individuals.Deduction Limit:
Deduction of up to Rs. 50,000 over and above the Rs. 2 lakh limit under section 24 of IT Act.Other Terms and Conditions:
- This must be the first house that the taxpayer has purchased.
- Value of the house should be Rs 50 lakhs or less
- Amount of loan taken for the house must be Rs 35 lakhs or less
- The home loan has been sanctioned by a Housing Finance Company or a Financial Institution
- The loan should have been sanctioned between 01.04.16 to 31.03.17
- The loan should not been availed for commercial purposes
- As on the date of the loan sanction, the individual must not be owning another house.
Features of the Deduction:
- The deduction under Section 80EE can only be claimed by individual taxpayers on properties purchased either singly or jointly.
- The maximum deduction that can be claimed under this section is Rs. 50,000 during a financial year.
- The deduction that can be claimed is above and beyond the limit of Rs. 2,00,000, as under Section 24 of the IT Act.
- The property can be either self-occupied or non-self-occupied.
