Deduction under Section 80EE
Section 80EE – For all the Dreamers who wish to build and own his house – place of dwelling can chase it by getting the relief on interest paid on Home loans. Various banks offering the buyers incentives on rate of interest, Finance Committee also thought of lending a hand to House Loans Buyer.
This section was firstly introduced in FY 13-14 and 14-15 which now have been extended for FY 16-17 i.e 31 st March 2017 as per Budget of 2016.
Section 80EE – Applicability :
1. Only to the Individual assesses.
2. Does not Own in their name any other house, i.e first-time buyer of house.
3. Valuation of the house property buying should be upto Rs. 50 Lakhs.
4. The amount sanctioned should be less than Rs. 35 Lakhs as a Home loan for the residential house property to be purchased
5. Loan should have been sanctioned (taken) between 1.4.2016 to 31.3.2017.
6. Loan should be taken from financial institution or Housing finance company only. For eg HDFC, SBI, PNB, Hudco or LIC Housing fund etc.
How to plan a deduction of Housing loan interest?
Follow simple steps :
1. Calculate the total amount of Interest paid in the Financial Year on housing loan.
2. Out of total interest calculated in above step 1, claim deduction upto amount Rs. 2,00,000 under section 24 of income tax act.
3. The balance amount upto Rs. 50,000 should be claimed under section 80EE of Income Tax Act,1961 till the repayment of installment.
So after evaluating the eligibility criteria manage tax by claiming the deduction of housing loan payments under Sections of Income Tax Act,1961 as follows :
2. Claim interest payments under Section 24 and section 80EE of Income Tax Act,1961.