Article explains three Deduction Claimed on the payment of principal and Interest amount of Housing Loan which are deduction under Section 24b for Interest on Home Loan, deduction under Section 80EEA which provides deduction on Interest on house loan over and above the eligibility mentioned in the section 24 and deduction under Section 80C for Repayment of Principal Amount of housing loan.
|Maximum Eligibility||Rs.150000/- shall be allowed as a deduction on Interest on house loan over and above the eligibility mentioned in the section 24.|
|Assessee||Applicable to individual either Resident or Non resident|
|Effective from||: 01/04/2021|
The Principal portion of the EMI paid for the year is allowed as deduction under Section 80C. The maximum amount that can be claimed is up to Rs.1,50,000/- But to claim this deduction, the house property should not be sold within 5 years of possession. Otherwise, the deduction claimed earlier will be added back to your income in the year of sale.
Besides claiming the deduction for principal repayment, a deduction for stamp duty and registration charges can also be claimed u/s 80C but within the overall limit of Rs. 1,50,000/-. However, it can be claimed only in the year in which these expenses are incurred.