INSUBCONTINENT EXCLUSIVE:
A deduction for interest payments up to Rs 1.5 lakh will be available under Section 80EEA.Under the objective 'Housing for all', the
government announced an additional interest deduction on repayment of home loans under certain conditions
Currently, the taxman allows deduction of up to Rs 2 lakh on payment of interest on home loans under Section 24 of the Income Tax Act, 1961
The government has proposed in Budget 2019 to introduce Section 80EEA to allow for an additional interest deduction of up to Rs 1.5 lakh on
lakh for self-occupying.Eligibility criteriaThe deduction under the new section will be available only to individuals
Partnership firm, a company, or any other kind of taxpayer, you cannot claim any benefit under this section," says Archit Gupta, Founder and
CEO, ClearTax.Amount of deductionA deduction for interest payments up to Rs 1.5 lakh will be available under Section 80EEA
This deduction will be over and above the deduction of Rs 2 lakh for interest payments available under Section 24 of the Income Tax Act
must have been taken from a financial institution or a housing finance company for buying a residential house property
Stamp duty value of the house property should be Rs 45 lakhs or less
needs to be a resident to be able to claim this benefit
section also does not specify if the residential house should be self-occupied to claim the deduction
So, borrowers living in rented houses can also claim this deduction," he further elaborates."Moreover, the deduction can only be claimed by
individuals for the house purchases jointly or singly
If a person jointly owns the house with a spouse and they both are paying the installments of the loan, then both of them can claim this
sections."First, exhaust your deductible limit under Section 24, which is Rs 2 lakh
Then, go on to claim the additional benefits under Section 80EEA
Therefore, this deduction is in addition to the Rs 2 lakh limit allowed under Section 24," elaborated Mr Gupta of ClearTax.Get Breaking
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