Section 80EEA: Deduction on Housing Loan Interest | Save Taxes From Home Loan Interest | Tax Saving

Section 80EEA was introduced to extend the benefits to new homeowners. It provides a deduction of Rs 1,50,000 for the interest paid on home loans taken from financial institutions or housing finance companies for buying residential properties. This deduction is in addition to deduction of Rs 2,00,000 under section 24(b).

The benefits under Section 80EEA are available exclusively to individual taxpayers, and not to HUFs, AOPs, partnership firms, companies, or any other entities.

To be eligible for the Section 80EEA deduction, certain conditions must be met.

The housing loan must be sanctioned between April 1, 2019, and March 31, 2022,

and the stamp duty value of the property should not exceed Rs 45 lakhs.

Additionally, the taxpayer should not own any other residential property on the date of loan sanction and should be a first-time homebuyer.

To illustrate how the deduction works, let's consider a few examples.

If Mr. Manohar, a first-time homebuyer, took out a home loan in FY 2019-20 for a house with a stamp duty value of Rs 40 lakh and paid Rs 4,00,000 in interest, he can claim a Rs 200,000 deduction for home loan interest under Section 24.

Furthermore, because the house's stamp value is less than Rs 45 lakh, he is eligible for a Rs 1,50,000 deduction under Section 80EEA. As a result, Mr Manohar is eligible for a total deduction of Rs 3,50,000 under Sections 80EEA and 24.

In conclusion, Section 80EEA has been a life saviour for new home buyers since the time it has been introduced. If you’re not yet claiming this tax benefit and you fit in the eligibility criteria, please claim this now. Submit proofs to your employer and save your taxes.

#housingloans #homeloaninterestrate #section80 #incometax #savetaxes #personalfinance

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[Tejashi]

Thanks for the info.!! Every year we can take the benefit under 80EEA or we can claim this only for 5 years from 2019 ??

[ajagir]

What is a stamp duty value of property? Is it the same as sale deed value? Is the stamp duty value mentioned on Index 2 ?

[runudas]

Ma'am, if any assesse takes a housing loan on April 1, 2023 then if he has to pay interest for it and for this reason which section of deduction be applicable to him ?

[kavyab]

Is 80EEA applicable only for first time home BUYERS or even first time home construction (home loan taken for house construction and is the first home)?

[tejasshah]

Can we do benefit for the past return also?

[krishnathakore]

Is there any rules for carpet area? For 80 EEA

[kiranvenkatapathi]

Madam
Can i claim the benefit every year or only for the first time ?

[HellwithitDestro]

Can I make use of 80 EEA if I have taken loan in Sep 2022 ?

[shivakumarm]

Hi Maam, i have taken the property on 2018 and loan senctioned on same year from indianbulls housing finance limited. Later in Sept 2020 i have done the balance transfer to icici bank. Can you please confirm whether i am eligible for getting this benifit.

[Srk]

Where to enter home loan interest amount (section 24) amount in IT return filing ? it only has option to 80EEA

[thiruvenkadaswamy]

What incase if Loan is Joint loan where one person is claiming interest benefits

[s.m.shahin]

How many times can I claim 80EEA? For 5 continuous years or untill the term of my loan?? Please help