To avail the additional deduction, the home loan must have been sanctioned between 1 April, 2019 and 31 March, 2020. The stamp duty value of the property can be up to ₹45 lakh. The taxpayer should be a first-time home buyer and not own any house as on the date of sanction of the loan
NEW DELHI: In case you took a home loan during fiscal 2019-20 and are filing income tax returns, you may claim an additional deduction of ₹1.5 lakh from this year under Section 80EEA. This deduction was introduced in the Union Budget 2019 to help buyers in the affordable housing segment, and is subject to conditions.
To avail the additional deduction, the home loan must have been sanctioned between 1 April, 2019 and 31 March, 2020. The stamp duty value of the property can be up to ₹45 lakh. The taxpayer should be a first-time home buyer and not own any house as on the date of sanction of the loan.
“This deduction is available over and above the 2 lakh deduction available under Section 24 (b). However, you can’t claim the same interest as deduction under both Section 24 (B) as well as Section 80EEA,” said Naveen Wadhwa, deputy general manager, Taxmann, a tax and accounting firm.
For instance, assume that the interest paid on the home loan for the year is ₹3.5 lakh. You can claim ₹2 lakh under Section 24 (b) and ₹1.5 lakh under Section 80EEA.
“It is advisable that one should claim the interest under Section 24 (b) first and the remaining under Section 80EEA,” said Wadhwa.
In case you have paid or accrued a home loan interest of ₹1.5 lakh you can’t claim it under both Section 24 (b) and Section 80EEA.
However, if you have claimed a deduction of ₹50,000 under Section 80EE, you won’t be eligible to claim the deduction under section 80EEA. Deduction under Section 80EE is available on the loan amount sanctioned between 1 April, 2016, and 31 March, 2017, for a house purchased worth ₹50 lakh and loan availed of up to ₹35 lakh. This is separate from the deduction allowed under Section 80EEA and Section 24 (b).
