Section 80EE of Income Tax Act

Section 80EE provides individuals to claim the home loan interest amount for first time home buyers. The maximum amount of deduction available under this section is Rs 50,000 during a financial year. Individual assessees can claim tax deduction under this section over and above the deduction limit mentioned under Section 24 of the Income Tax Act 1961 which stands at Rs 2,00,000 per annum.

Features of Section 80EE Deduction

Maximum Amount Limit for Deduction

The deduction amount under this section is Rs 50,000 which is over and above the limit of Rs 2,00,000 per annum under Section 24 of the Income Tax Act.

Eligibility

The deduction under this category can only be claimed by an individual. A Hindu Undivided Family (HUF), AOP, a company or any other kind of taxpayer cannot claim for benefit under this section.

Others

One should not own any other house property on the date of the sanction of a loan from a financial institution to claim for deduction under this section.

Conditions for claiming Deduction under Section 80EE

• The total value of the loan amount taken for the house should be equal to or less than Rs 35 lakhs.
• The value of the house should be equal to or less than Rs 50 lakhs.
• The loan should be taken from a housing finance company or a financial institution
• The loan should be sanctioned between 01/04/2016 to 31/03/2017 – As on the date of the sanction of the loan, the individual should not own any other house property.