Lakesh Kumar

Lakesh KumarIncome Tax Benefit on Home Loan Interest under Section 80EE Of Income Tax Act. For the A.Y. 2014-15 and A.Y. 2015-16

Introduction- Finance Minister inserted a new section 80EE relating to the additional deduction in respect of interest on loan taken for residential house property. Assessee can avail the benefits of this section in two A.Y. 2014-15 & 2015-16. Purpose of this section is to promote house ownership & give a fillip to a number of industries like steel, cement, brick, wood etc. besides jobs to thousands of construction workers.

Applicability- Benefit of this section 80EE can avail by Individual assessee. Deduction under this section is not available for any other assessee (like HUF, firm etc.). Individual can claim benefit under this section only when all the following conditions are satisfied, these are-

  • Purchaser should be first time buyer. i.e. he has never purchased any house and now he is going to purchase a house.
  • Value of the house should not more than 40 lakh.
  • Loan taken by Individual for the purpose of buy a house should not be more than 25 lakh.
  • On the date of sanction of loan individual does not have any own residential house property.
  • Loan for this purpose taken by individual should be from the Financial Institution or Housing Finance Company.
  • For this purpose, loan should be sanctioned between 01.04.13 to 31.03.14.

U/s 80EE (4) – Provides that where a deduction under this section is allowed for any interest payable on loan only when deduction shall not be allowed in respect of such interest under any other provisions of the Act for the same or any other assessment year.

Quantum of Deduction- Assessee can take deduction under section 80EE on interest payable on home loan upto 1 Lakh in A.Y.2014-15. It can claim deduction in two assessments year. Means if whole amount of interest payable upto 1 lakh is not claim as deduction in A.Y.2014-15 then remaining balance amount upto 1 lakh can claim in A.Y.2015-16.Total deduction under this section shall not be more than 1 lakh.

Example- Assessee has taken a loan for the purpose of residential house property & interest payable on loan Rs. 90000/- for the A.Y.2014-15.In this case assessee can claim deduction 90000/- in A.Y.2014-15 and other remaining balance i.e. Rs. 10,000/- ,can claim in A.Y.2015-16

Clarification of Section 24 and Section 80EE-

Where the property has been acquired, constructed, repaired, renewed or reconstruction with borrowed capital, the amount of any interest payable on such capital is deductible under section 24(b), subject to the prescribed conditions.

As per Sub Section 4 section 80EE, assessee can avail deduction in respect of interest payable on loan only when assessee does not claim any deduction in respect of such interest in any other provisions of the Act.

However Finance Bill , 2013 contain an announcement of additional deduction of interest on housing loan for first time buyer state that-

I propose to allow such home buyers an additional deduction of interest of Rs.100000/- to be claimed in A.Y.2014-15. If the limit is not exhausted, the balance may be claimed in A.Y.2015-16. This deduction will be over and above the deduction of Rs.150000/-allowed for self occupied properties under section 24 of the income tax Act.

So as per above explanation there is clash between Sub section 4 of section 80EE and as per announcement under para 132.So according to me assessee may also claim additional deduction under section 80EE apart from deduction U/s 24.

Key Notes

1) Deduction available to individual only not to other persons.

2) Deemed owner concept does not apply in respect of such deduction.

3) Spouse would not disqualify for relief Under Section 80EE in case of residential house purchased in joint names.

4) Assessee can purchase house for both purpose .i.e. it can be for self occupied or can be Non self occupied.

5) Interest includes “any service fee or other charges in respect of money borrowed or processing fees”.

6) Date of make application to loan irrelevant but date of sanction of loan is relevant.

Section 80EE : Deduction for interest on loan for residential house property

( Author is a CA Student and can be reached at E-Mail-: lakeshkr@gmail.com)

Click Here to Read Other Articles of Lakesh Kumar

(Article was First Published on 23.01.2014)

More Under Income Tax

Posted Under

Category : Income Tax (26760)
Type : Articles (16255)

242 responses to “Section 80EE Income Tax Benefit on Home Loan Interest”

  1. pavani says:

    my query is related to section 80EE.

    assume a property is purchased by two individuals. property value >50 lakhs and loan amount >35 lakhs.

    in this situation, is there any scope for claiming 80 EE benefit?
    By sharing the property value and loan amount between two individuals (e.g. Property value 36 lakh and 15 lakh and loan amount 28 lakh and 12 lakh for individual A and B respectively).

  2. V.srinivasulu says:

    I received 5000 rupees as tuition fee reimbursement for 2 children from my employer and one lakh medical reimbursement whether it comes in taxable income or not

  3. B G GARG says:

    Subject: I-tax benefits u/s 80C & 80EE+ 50,000/- and I-tax benefits expenses on medical treatment
    Sir,
    1. I am working in central govt services (CWC) at New Delhi. I had purchased a 5 year old ready to move house ( 08/2016 and taken key ) at Haldwani (Nanittal) registry made in favor of my wife (House wife & fully depend on me) amounting to Rs. 36 Lakh + registry expenditure Rs. 1.64 Lakh + loan expenditure 0.26 Lakh Total amount Rs. 37.90 Lakh. I had taken advance from my GPF for above house Rs. 7.90 Lakh as margin money. Loan taken from LIC–Home loan Rs. 30 Lakh at EMI Rs. 27950/- per month for 20 year. Due to length of my service (below 3 year) LIC-HL sanction loan Rs. 30 Lakh in favor of My wife (Applicant), Myself and My son (Co-applicant) working in private org at Gurgaon & his services balance about 28 years). Can I take I-tax exemptions u/s 80cc & U/S 24 along with additional special rebate Rs.50,000/- Or my son can be take up the same. Now I want your help about Income-tax rebate as per current directions of CBDT.

    2. Today I am facing / suffering critical disease after providing of STUNT at MAX-Saket on 25/26- 06-2016 till date and due to wrong treatment / Reaction of medicine, I was facing failure of Multy -organs as Kidney, Liver, lungs & Skin (DRESS SYNDROM) etc. during the period till date, I was admitted 02 times at MAX-Saket-Delhi, 01 times at Mool Chand hospital-Delhi and 02 Times at AIIMS-Delhi
    A. I had taken all bills as per rate of CGHS but my department not reimbursement in full bill amount so that can I take Income tax benefits at balance amount of bill because it is my income loss.
    Now I want your help about Income-tax rebate as per current directions of CBDT
    Thanking yours.

    B G Garg
    Pan: ACWPG5799E
    Ph. 9891941499, e-mail bggarg123@gmail.com

    • ramakrishna says:

      i am central govt employee, i have taken housing loan of 20 lakhs, my parents staying in that home and i am staying rent house. can i get hra exemcption and interest loan exemcption and first time i was taken loan can i eligible 50000 rupees excemption ( 80EE).
      please clarify

  4. Brij Gopal Garg says:

    I am working in CWC at New Delhi and purchased house on 08/16 at Haldwani (Nanittal) in the ownership of my wife (House wife ) Rs. 37.90 Lakh (cost of registry & loan) for this I had taken advance from GPF as 20% margin money. LIC–Home Loan Sanction amount Rs. 30 Lakh @ Rs.27950/- P/m. for 20 year in favor of My wife (Applicant), Myself and My son (Co-applicant working at Gurgaon) my question is Who can claim I-tax benefits u/s 80C & 80EE+ 50,000/- as myself or my son.

  5. PRASANNA KUMAR BK says:

    Hello,

    I bought a flat on my wife’s name and taken a loan on both of ours name. EMI is deducting from my account.

    In this situation, who (me or my wife) will be eligible for taking tax benefit on housing loan interest part?

  6. jp says:

    interest component is to be filled under sec 80 EE . But the same is not being reflected in itr form, please provide solution.

  7. Mayur says:

    I have not got the possesion of the house can I claim this benefit if I satisfy all other conditions

  8. U.K.SINHA says:

    I purchased a residential flat worth Rs 30 lakhs in November 2015 by taking loan of Rs 21 lakhs from SBI in the month of July 2014 for a term of 12 years and accordingly I am paying the EMI.Now i want to liquidate this entire loan amount(Principal+Interest) by selling my another residential flat possessed by me in May 2015 which was constructed by builder on my own inherited land.Now my question is whether the amount gained arising out from sale of my previous flat and used for liquidating loan amount used for purchasing 2nd flat comes under Tax liability or exemption from Tax?

  9. Siddharth Singh says:

    I TOOK A HOME LOAN OF 35 LACS FOR THE PROPERTY WORTH 45 LACS FOR 30 YEARS IN AUGUST 2015…LOAN IS A JOINT LOAN…PROPERTY IS GOING TO BE HANDOVER IN 2017 END…IS THERE ANY PROVISION TO CLAIM ANY TAX BENEFIT IN THIS FINANCIAL YEAR 15-16…LOAN FROM sbi

  10. shiva says:

    i made home loan repayment of 5 lakhs rupees, but from this 5 lakh i can claim only 1.5 lakhs. can i claim rest of 3.5 lakh in next financial year 2016-17.

  11. shiva says:

    I home loan sanctioned on 26/03/2012. and i took possession on 06/12/2013. the interest which accrued in that period is about 125000/- which i dint claim till now.
    i just want to know that can i divide 125000 in five equal parts and claim that in this financial year and coming financial years

  12. ADITYA GARG . says:

    Hello,

    I bought a flat on my wife’s name and taken a loan on both of ours name. EMI is deducting from my account.

    In this situation, who (me or my wife) will be eligible for taking tax benefit on housing loan interest part?

  13. Ashok Kumar Rout says:

    Sir,
    I have taken loan of 25 lacs in 2011. I did not get any tax exemption since it was possession was not obtained. Now I got possession in Nov 2015. I am claiming interest exemption on 2015-16. My question is

    1. How can i get the interest deduction 2012-13, 2013-2014 and 2014-2015.

    2.Am I eligible for first home buyer benefit of 1 lacs under 80EE

  14. Ashok Kumar Rout says:

    Sir,
    I have taken loan of 25 lacs in 2011. I did not get any tax exemption since it was possession was not obtained. Now I got possession in Nov 2015. I am claiming intrest exemption on 2015-16. My quesstion is:-

    1. How can i get the interest deduction 2012-13, 2013-2014 and 2014-2015.

    2.Am I eligible for first home buyer benefit of 1 lacs under 80EE

  15. Chetan N. Ladekar says:

    When there is two property & taken separate loan on that, but when we consider interest amt. of loan on both property or only one.

  16. Chetan N. Ladekar says:

    When there is two property & also loan on that two property at that time we considered interest amt. for deduction of two property or only one property, please reply fast.

  17. Bibhu says:

    I am a co applicant to a home loan for the property ownwed by my father. I am paying the loan installments. Can I avail tax exepmtion undr section 80EE.

  18. s.s.rao says:

    Sir just i hv taken loan from Lichf 1390000 my wife name i m co applicant i ask lic for my income tax rebate they told me tht u are eligible for income tax rebate both on principal n intetest sir pls elabrote me my position how i will get rebate in 80 c as well as some other section
    Thanks sir
    Sriniwas rao s
    All india radio
    Amravati

    ms9890830482

  19. prakash says:

    we have taken home loan f Rs.20.00 lac and we need additional loan of rs. 10.00 lacs
    kindly guide us how much interest of home loan we can claim under 80 EE

  20. amit says:

    whats the meaning of non self occupied ??

  21. P.MUKHERJEE says:

    I was bought a new flat which is under construction and i took loan of 2500000 and flat cost 3500000. Possesion will given in the month of January15 should i claim tax rebate in this financial year and i leave with my parent house and i wish to give flat in rent then will i get income tax rebate in future also up to 200000 interest.

  22. A.Venkatesan says:

    Hai,

    I am a Central Govt Employee.I have availed HBA loan during the year 1999-2000 from govt of india . I have taken insurance for the house bldg up to 2010. And forgot to renew thereafter. I have received intimation from Administration a month back asking me to show the copy of the insurance for the remaining period , ie from 2010 to 2020.

    However I have renewed the insurance during this year 2015 and have given to copy to our administration. however I have received a notice from them that My interest has been revised upward by 3 %, because of noncompliance of Insurance Clause. I have asked my employer to give Tax rebate for the additional 3% of interest. My employer says that I am not eligible for the Tax rebate on the additional 3 % interest that I am paying now.

    Last month I have completed repayment of my Principal Amount. From This month downwards I am paying the interest component.

    My loan amount is Rs 5.6 lakhs.

    Kindly advice as whether I am eligible for Tax Rebate on the additional 3 % of interest or not.

    Kindly Clarify.

    Thank You
    A.Venkatesan

  23. somesh says:

    sir as you mention home interest comes under section 24 i want to know suppose any one who take home loan 0f 2000000 and the interst is 155000 as per bank but if as tax payer i dont know exact amount of interst can i file it as 150000 in ay 2015-2016 for 2014-2015 there is any penalty for me as mismatch figure or ok if amount i shows is less then statemnt

  24. Ravi Kumar M says:

    Hi,
    I have taken the Home loan on the property which is on my mother’ name and i am paying the EMI for the same. Can i get the benefit from Tax. If yes how should i claim the same.

    Regards,
    Ravi Kumar M.

  25. NV Deshpande says:

    Dear Expert,

    I seek guidance on whether i can get incometax benefit of 80ee.

    I had taken Home Loan for 14 years period in September 2014
    for Rs. 25,00,000/- from Axis bank @ 10.15% interest for purchasing of a flat.
    My EMI is 28082/- from October 2014.

    IS it possible to get the Incometax benefit of 80EE, if so how?

    Thanks in anticipation.
    regards
    nvd.

  26. chandan jha says:

    Sir, I want to borrow land loan from DHFL/ PNB Housing finnance. Is the EMI along with interest untaxable? please clearify me.

  27. chandan jha says:

    Sir, I want to borrow land loan from DHFL/ PNB Housing finnance. Is the EMI along with interest untaxable? please clearify me.Sir, I want to borrow land loan from DHFL/ PNB Housing finnance. Is the EMI along with interest untaxable? please clearify me.

  28. Sam says:

    @Ruchi Kamra:

    You can show interest on home loan in section 80EE, and also on 24(b) ie. under head “loss from housing/property” (don’t remember the exact wording). There are conditions for both, easily accessible with a Google search.

  29. AMOL CHITRODE says:

    80 EE SECTION LOAN OF HOUSE PROPERTY EXEMPT LIMIT.

  30. Nitin Gupta says:

    Sir,

    I have read section 80EE at Income Tax Website. No where it is mentioned that the construction of property shall be completed for claiming the benefit under 80EE. Is it true?

    My loan is qualifying all criteias but construction is still not completed.

    Nitin Gupta

  31. Tushar says:

    Dear Sir,

    My loan of RS 1800000 sanctioned in feb-14 for a resale house valued about 3000000 and occupied in mar-14. In AY 2014-15 I got benefit of following deductions:

    22000 interest (24) but i paid about 30000
    50000 stamp duty (80c) but i paid 105000

    so here
    (a) 8000 remaining interest benefit
    (b) 55000 remaining stamp duty benefit

    apart from that i also pail following charges from loan application to loan saction

    (c) 2750 bank loan application fee at bank
    (d) 2200 loan processing fee at bank
    (e) 20860 registration fee at gov. office for sale deed
    (f) 3500 advocate fee for sale deed
    (g) 6440 stamp charges at bank’s loan processing center
    (h) 6200 Mortgage registration at gov. office
    (i) 14776 property insurance at bank (insurance company)

    my question is, which things from (a) to (i), i can consider for deduction in AY 2015-15 under section 80ee?

    if anything i can avail then can file revised ITR as I already have filed return for AY 2015-16 and came to about this very late.

    Thanks in advance for your reply.

  32. Ruchi Kamra says:

    I have taken the home loan of 2311200 for purchase of house property. Interest component is 188309 as per interest certificate given by bank. where to show this amount in ITR for deduction? as there is no option of filling 24(B) section.

    Please Help

  33. Anirban Basak says:

    Hi,

    My housing loan fully satisfy with the conditions of 80EE. I have provided interest 2,17,362 for the tax year 2014-15; now while e-filling for the financial year 2014-15, I have provided 2,00000 in section 24.(maximum allowed) and provided 1,00000 in 80EE section.

    Is this correct? if not, what should be put in 80EE.

  34. Soham Roy Chaudhuri says:

    My home loan of Rs 21,40,000 (Property cost Rs 28L) was sanctioned in May 2013 but I did not apply for 80EE deductions during IT return of AY 2014-15. Can I claim the same in AY2015-16?

    Also, the property was under-construction during FY2014-15. Can I claim deduction for for section 24 / 80EE(4)? Is it eligible for deduction u/s 80C(the principle amount)?

  35. MANOJ/DMRC says:

    I HAVE TAKEN HOUSING LOAN IN 2008 (FOR RS. 8 LAKH), FROM MY DEPARTMENT. PRESENTLY PAYING ONLY PRINCIPAL. CAN I CLAIM REBATE/DEDUCTION ON ACCUMULATED INTEREST. I HAD NOT CLAIMED ANYTHING TILL DATE (UNDER THIS CATEGORY). IF YES, I HAD TO FILE REVISED RETURN, TO GET REFUND OR I CAN CLAIM THE SAME IN THIS RETURN (TOTAL INTEREST ACCUMULATED FROM APR-13 TO MAR-15 IS RS. 40,000/-)

  36. Shamshu says:

    hi,
    I would like to take Home loan from Chit Funds Ltd. Could you please let me know whether I am eligible for Tax deduction. If I am eligible what are the proofs required from Chit Funds Ltd.

  37. MANU says:

    I HAVE TAKEN HOUSING LOAN ON JAN-2014.HB interest for FY (2013-2014) was Rs.55000 which has been claimed U/s 80EE. Total interest for the FY-(2014-2015),Comes around 2,40,000. I have claimed HBL Int. 200000 in section 24. Can I claimed remaining Rs 40,000 in section 80EE .

  38. Lakesh says:

    Madhu, No you are not eligible.

  39. Madhu says:

    As per the 80EE clause, I’m meeting all the clauses except that my loan account is Rs. 25,51,000. (basically just 51K more). Can I claim the benefit while filing the taxes in the assessment year 2015-16 ?

  40. Lakesh says:

    Durgesh Sir, yes you can avail whole interest if property is on rent without any limit.If it is self occupied then you can claim upto rs. 2 lakh.
    Pre-Construction interest can be claimed in five equal installments.

  41. durgesh says:

    Sir,
    my house construction is complete and get possession on Feb 14. FYI home loan interest is rs 300000. Can I avail 3 lac u/s 24. How can I avail interest paid under construction period.

  42. Ajay Goyal says:

    Respected sir, i had taken contruction loan from the bank . my wife & father are coapplicants in loan but i am the only owner of the plot which is mortage to bank against loan grantee. My father is retiered and wife is house wife. I am govt employee. I am holy soly responsible for repayment of loan. I want to clain 100% of repayment of loan ( interest + principle ) in my return. But clark of my ddo is not agreed and giving me half banifit in my 16 no. Form. He said there are two or three candidates in loan so benifits in rebate should be devided accordingly. I think he is wrong and some action should be done against him. Please suggest me weighter he is wrong or not and what can i do to correcting my 16 no. Form . Thanks

  43. Lakesh says:

    Abhijit Sir, value of house property exceeds 40 lakh (including plot) so you are not eligible.

  44. Lakesh says:

    mohit Sir, you are not eligible.

  45. Lakesh says:

    Yogesh, Sir interest on housing loan can be avail upto 2 lakh. So you can claim interest u/s 24(b) instead of section 80EE

  46. Lakesh says:

    S K Bhatt, sir, untill house is fully constructed you can not get deduction. when construction will complete then pre construction interest can be claimed as deduction in five equal installments u/s 24(b) and principal amount U/s 80C

  47. Lakesh says:

    Abhijit Sir, possession is required to get benefits.

  48. s k bhatt says:

    sir,
    i got loan of 10,00,000/- for house. and this house is under construction.i have paid interest 84000/- + principle amount 16000/- in finacial year 2014-15.now i want to know that how can i get rebate in tax ?

  49. Yogesh says:

    Dear Lakesh,
    I’m an Employee in a private sector. I’ve a query that, interest on Housing Loan is been considered upto 136000/- in Form No. 16. But, in e-filing, it does consider upto 100000/- even after filling 136000/- figure in the 80EE column. Please suggest, what will be the solution for this???
    Thank you!

  50. Abhijit says:

    Hi Lakesh,

    In my case house loan amount 24.9 Lac, sanctioned in May/2013 and house value less than 40 lac. But ‘property’ value would exceed 40 lac if land value is added.

    Do I qualify for 80EE deduction?

    I have not claimed anything in AY 14-15. Can I claim the full 1,00,000 in current AY 15-16?

    Thanks
    Abhijit

  51. Rajiv Bhagat says:

    Sir!
    can i fill housing loan installment amount in our ITR-1? if yes then where?

  52. mohit says:

    hi,
    I have take home loan under construction link plan will i still get the tax benifit of one lakh under 80EE

  53. Bharti Karnani says:

    Sir very nice article. Please Keep on writing such articles. wish you all the best for your future. 🙂

  54. Abhijit says:

    Sir,

    I have a query, can i claim this tax benefit even if i haven’t got the possession yet ?

  55. Lakesh says:

    Amol Jadhav Sir, Benefits of this section available only opto A.Y 2015-16.After this A.Y. you are not able to get deduction

  56. amol jadhav says:

    Hi, I have a query on 80EE. I am fully satisfying all the rules of 80EE, however have a query : Example- Assessee has taken a loan for the purpose of residential house property & interest payable on loan Rs. 90000/- for the A.Y.2014-15.In this case assessee can claim deduction 90000/- in A.Y.2014-15 and other remaining balance i.e. Rs. 10,000/- ,can claim in A.Y.2015-16 Query: If 80EE was not claimed in Apri 2014-Mar 2015, can full 1 lac amount be claimed in Next year Apr 2015-Mar 2016 ?

  57. Lakesh says:

    Suganya mam, your husband is not co-owner of the property, hence he is not eligible to claim interest deduction u/s 24b

  58. Lakesh says:

    Rajan Sir, you can claim interest U/s 24(b) only when you are also co-owner of the house property.So company views is right.

  59. Colonel Ramaswamy .K ( Retd) says:

    Dear Lakesh
    This query is not with respect to 80 EE, but availing Deduction for the Interest paid on Loan taken from a Bank
    I booked a Flat with a AWHO Project ( A Housing Society for Army Officers ,both serving & Retired ) coming up in Bangalore & I was allotted a flat, not specifically by Door No, which was under construction .
    I applied for a loan for Rs. 50 Lakhs with my NRI son as co applicant & m loan was sanctioned in Dec 2010. 1st Instalment of loan was disbursed directly to AWHO on 11 Jan 2011. I strted paying EMIs from Feb 2011.
    The construction in general was completed in April 2015 only and possession was given to me in April 2015.
    How ever, the specific Flat with Door No was allotted to me in 2014,though the construction Was still going on.
    The stipulation to avail pre construction interest amount paid says , one can avail the interest amount in 5 equal installments from the next financial years, provided the construction is completed in 3 years.
    In my case , actual constuction was completed in Apr 2015, but the Specific Flat with Specific Door No was allotted in 2014 which is with in 3 years
    Can I claim my pre construction Interest paid in 5 installments starting from FY 2014 -15.
    Kindly Clarify.
    Colonel Ramaswamy

  60. Jitender kumar choudhary says:

    up date to daly basis

  61. Rajan says:

    Hi.
    I am a co-borrower along with my mom of home loan for construction. Owner of the property is my mother. She is dependent on me and I am repaying the whole amount. How can i avail tax benefit? My company says I should be the owner or necessarily co-owner.

  62. Manoj Tyagi says:

    Hi,

    I am a software professional and have a query on 80EE. I am fully satisfying all the rules of 80EE, however have a query :

    Example- Assessee has taken a loan for the purpose of residential house property & interest payable on loan Rs. 90000/- for the A.Y.2014-15.In this case assessee can claim deduction 90000/- in A.Y.2014-15 and other remaining balance i.e. Rs. 10,000/- ,can claim in A.Y.2015-16

    Query: If 80EE was not claimed in Apri 2014-Mar 2015, can full 1 lac amount be claimed in Next year Apr 2015-Mar 2016 ?

    Regards
    Manoj Tyagi

  63. Sameer says:

    Selection criteria takes out majority of people. Value of 40L with loan less than 25 lacs is a difficult to have as most of the buyers go for max. 80% of the loan to value ie. 32 lacs for a property 40L. Also It is hard to find a property for 30 Lacs or below even in smaller towns.

  64. puja says:

    Whether higher studies pursued from any foreign university is included in the definition of higher education given by section 80E of Income tax?

  65. SK Singh says:

    Sir,
    I have taken house building loan from AFGIS (Air Force Group Insurance scheme) of Rs. 10 lakhs in the year 2011. My flat is under construction and likely to be handed over by pvt builder in Dec 15. Initially for 1 and 1/2 yrs I have paid pre-emi @ 2000/- pm and finally my EMI has been fixed Rs. 15166/- pm. I have also paid Income tax appx Rs. 1500/- pm till Nov 14. I am not aware that how and when I will get 80 EE benefits. I am still not aware that what I should do if I get my possession letter by Pvt builder regarding rebate of house loan. Pl advise me in details and what course of action I should adopt. I am serving in defence service.
    Thanks, waiting for your valuable reply.

  66. Bhushan Rane says:

    Hi,

    I have purchased two adjacent houses. Both purchases are done on same day in 13-14.
    For both properties I have two separate Housing loans sanctioned in 2013-2014.
    Property including both is around 32.5 lac and loan sanctioned around 13.8 lac per property.

    As condition the property should be 1st property for that person who wish to avail it i.e. he should not have another property prior,
    so the question is – can I avail 80EE – 1 lac additional benefit? Is my properties are considered as 1st properties or 2nd properties?

    Please let me know. I wanted to avail additional benefit of 1 lac this year.

  67. venugopal says:

    Sir
    i am working in Agriculture Department as a class 1 officer.HBA is taken both me&spouse.the repayment of loan is in my account only.she is not a tax payee and no need of income tax calculations.i claimed the entire amount principal amount Rs 50000/ and interest Rs 80000/for my income tax exception .But the tresary authorities saying only half of both principal and interest is admissible to me. please advice me whether the objection raised by the treasry is right
    Regards B.venugopal

  68. Suganya says:

    I have home loan in my name while i was working. Currently i’m not working and i included my Husband as Co Applicant in my home loan( But he is not Co owner of the property). And i have linked my Husband’s Salary account for debiting the EMI. Will my be eligible to claim the interest and Principal. I wants my husband to claim the tax benefit for this home loan, whats the procedure for this??

    • pratibha saini says:

      Dear sir ;I am the co-borrower along with my mother in low of home lone for construction owenner of the property is my mother in low [we bought the plot her name take the persnal lone for me in 2010] she is totaly dependent on me and I am repaying the whole amount of EMI how can I take the tax benefit

  69. ramesh kumar gupta says:

    I buy a flat in rs.4003000 & home loan is 3000000
    My principal is 146000 & intetrst is 266000
    In which section l belong & by how much

  70. n gobinath says:

    dear sir

    i taken loan 20 lac from may 2013 as per loan cerctifate my interest 1,75,801 pricipal 35,326(April 2013 – March 2014)
    my loan and properity match as per section 80 EE conditions

    pls advice what may i get tax benifits what i do persent(2014-2015) and next year (2015-2016)
    gobinath n

  71. narayana says:

    i bought a house worth 2 crore. i borrowed 1.25 crore from the bank. Now I have a remaining balance of 85 lacs as home loan. i have a EMI of Rs 1,05,000 of which the interest is 75000 and the principal is 30,000.
    the house is rented now and i get Rs 65,000 monthly as rent. could you explain as to how much of income tax am i supposed to pay.

  72. K.VENUGOPALA SARMA says:

    Sir I have taken 2 appartments and availed loan from Sbi and Tata capital. can i avail Loan Intrest and Prilncipal for the above to in 2014-2015 TDS.

  73. Prahlad says:

    I have booked a flat and the construction of it is yet to complete. I got a home loan and started paying EMI from Oct 2011. As per section 24 of Income tax, I can only avail tax benefit on interest paid only if the construction is completed within 3 yrs of load borrowed. As you could see, I will be crossing this time period this March.

    So my question is –

    1. If I register my property next year .e. after 3 yrs of barrowing money, will I not be able to claim tax benefit under Section 24? If so, is it only applicable for next financial year or throughout the tenure of loan repayment

    2. I am paying full EMI since Oct 2011. Will I be able to claim tax benefit on the interest & principal I paid before registration.

  74. dadi vikram says:

    Dear Sir,

    i have took a housing loan of 10 lakhs in sbi bank vizag and the house is under constuction , and i am presently staying in a rent house for 8000 per month , can i claim housing loan for it returns for the under constructions house and also as i am paying 12000 emi per month from last 2 years . kindly suggest

  75. Akshay K V says:

    Hi,

    Can you please let us know is it possible to get exemption for 80EE and U/S 24.
    If I purchase one house i can get exemption U/S 80EE of Rs.100000 on interest then what about principal ….?

    If i purchase one house and i will get exemption U/S 80EE of 100000 and is that possible that i can get exemption on U/S 24 of Rs.200000 on interest also ….?

    If i purchase one more house and i wont get exemption U/S 80EE of 100000 and is that possible that i can get exemption on U/S 24 of Rs.200000 on interest also ….?

    thank you,

    Regards,
    Akshay

  76. keerthy says:

    my husband took house loan as govt employee.now he is in study leave without pay.as a govt employee only im paying the loan,can i show it in income tax

  77. Mayank Kumar says:

    I just bought a home.But have taken 27 lakhs home loan and I am a first time buyer.Am I not eligible for tax benefits on it.As it is written that loan amount should be less then 25 lakhs.

  78. DR ATUL BANDEBUCHE says:

    I had taken a housing loan FROM UNION BANK OF INDIA and I am giving all EMIs from my account but the house is in the name of my father AND I am not having any immovable or movable property on my name .Can I get Tax rebtae on this housing loan, since I am a Central Govt. employee.

  79. Samiran Kanrar says:

    Sir,

    I took loan on 01/06/2013.Amount is 15Lac and property value is 26lac.
    This is my first property.In last financial year (2013-14) I have paid Rs/-84755 as interest amount . For this year (2014-15) I have paid interest around 1.5 lac.
    I have got possession on 29 Oct 2014.Since I have no idea about 80EE that is why I have not done anything at the time of submitting my return it in last year .
    Could you please guide me what I can do.

    Thanks in advance.

  80. Urvesh Mehta says:

    Hi I purchased a house with help of HDFC home loan in October 2012. In october 2013, I transferred this loan to SBI. May I avail benefits of the section 80 EE for current year (financial year 2014-15) and (assessment year 2015-16). Please help.

  81. ashok says:

    I have purchased residential plot in secret 3 g NOIDA @25 lac and taken housing loan from Lichf 20 lac for the payment of installment to authority in year 2009. Can I entitled for it rebate on principal and interest. I m govt servent.

  82. p d suresh says:

    sir ,
    I purchased the flat in the year 1999 and cleared the house loan in 2014. Now i am making income tax for the worth of 25000 p.a. if I will take any loan on existing flat for repairs and fixing of ward robe , can i get income tax exemption?

    pl give advice to me

    p.D.suresh
    prataapasuresh@gmail.com

  83. Sridevi says:

    Sir,
    I have purchased house for 34 lac. Loan sanctioned in May 2013. My loan amount is 27 lacs. For 2013 2014 IT i showed 1.5 lac for interest. For this year 2014 – 2015 can i show 2 lacs for interest as per the new budget?

  84. Subash Sahoo says:

    Sir,

    I took loan on 12/10/2013.AMount is below 25Lac and property value is 32lac.
    This is my first property, For this year I have paide interest around 1.5 lac.
    Can I claim this amount under 80EE my flat is under construction and will get on October 2015.
    some one told me if this flat is under construction I can not claim under 80EE
    Could you please guide me if I can claim.

  85. Lakesh says:

    Mani Sir, You can get whole amount deduction for Interest u/s 24b and for principal amount U/s 80C.

  86. Gaurav Vyas says:

    Sir,
    I had purchased a flat from resell in this financial year 2014-15 and doing home loan for that… This flat is in city where I doing job.. I got my HRA from my company as part of my CTC.. My dependent parent and wife leave in city 150 km away from my job place due to medical treatment and medical assistant.. And I pay 11000/=Rs rent for that.. Can I take advantage of both home loan and HRA? I have the land loard pan card and rent pay slip.
    Please reply…
    Gaurav
    09979845981

  87. Mani says:

    Hi,

    i need to know how much tax benefit will i get for my home loan.
    Please find details

    Property value: 46 lakhs
    Loan amount: 30 lakhs
    loan sanctioned date: july 2013

    principle component : 39000
    interest component : 145000

    will tax exemption will applicable to me?

  88. sudin says:

    I have loan sanctioned in feb 2014.
    i) property value < 40 lakhs
    ii) Loan value less than 25 lakhs
    iii) first home.

    Now as per disbursment of loan I just had 5 k interest in Feb 2014 and March 2014 which I claimed in IT return of 2014 under 80EE.

    Now upto March 2015 I will be charged additional interest of 105K till March 2015.

    As still there is no possession of property and completion of property.
    Can I claim the interest of 95K under 80EE this year. and remaining of (105-95) 10k over next 5 year under 24(b).

  89. Alok Sharma says:

    I am a banker and has availed staff housing loan of Rs 20 lacs in 2011. I will possession in Feb 2015. In staff housing loan we first pay principle portion in first 15 years and interest debited at simple interest in next 5 years. Now, interest is debited every months but not repaid. Only principle amount is being paid. Whether I will be able to claim benefits of interest debited but not paid in my income tax return?

  90. akhilesh says:

    What if the possession is after 3 years ?
    consider,
    the flat booked in Dec 11. House loan sanctioned in June 12 while possession obtained in March 14. Is the 3 year timeline start from date of booking or actual home loan sanction or first disbursement ??

    What would be effect on tax benefit ?

  91. Lakesh says:

    Zuber Sir, you can get HRA deduction however interest deduction can be claimed only when the construction will complete.you are not eligible to get deduction u/s 80EE.

  92. Zuber says:

    Sir,

    I have registered a property in Aug 2014 and I am paying an Emi of Rs. 31400 (Prin+int) for a loan of Rs. 32 lakhs.

    The property is still under construction and I will be getting the possession in Jan 2015.

    Now my Q. is how I can claim both HRA till Jan 2015 and repayment of interest component.

    Thanks & Regards
    Zuber

  93. Mohit says:

    It is not clear if the benefit of 80EE for rebate in income tax on the interest paid on home loan is available for the property under construction or it is meant only for the properties for which construction is completed. Please clarify

  94. Ramawat Akshay says:

    I HAVE PAID MY HOUSING LOAN BEFORE THREE YEAR, IF I HAVE TAKEN HOUSING LOAN AGAIN ON THIS HOUSE, I AM ELIGIBLE FOR IT BENEFIT OR NOT. IF YES IN WHICH RULE

  95. Vineet Dubey says:

    Hi,

    As we know that the income tax rebate on Home Loan is possible only after the possession of the flat. After the registration what is the proof required to show that the home is possessed?

  96. a k singh says:

    my wife is owner of property. home loan bank shows her as borrower not to me. i am co applicant as per bank. my wife is not working i am paying emi from my saving bank salary account.can i take tax benifit, my wife is a house wife

  97. Bharti Solanki says:

    Hi,

    I am eligible for a house loan of 25 lak and which is approved. now I wanted only 15 lakh loan amount and wanted to to cancel the remaining 10 lakh loan. I will give a written application to cancle the remaining 10 lakh loan so would i have to pay any kind of interest for the 10 lakh which has not been disbursed yet?

  98. Nilesh says:

    Hello,
    I have taken a home loan.
    It is sanction on dated 29 Jan 2013 and My EMI has been started from MAY 2014 and property is under-construction.
    Am i eligible for section 80EE for Tax Benefits?
    Please provide me reply.

  99. Nilesh says:

    Hello,
    I have taken a home loan.
    It is sanction on dated 29 Jan 2013 and My EMI has been started from MAY 2014 and property is under-construction.
    Am i eligible for section 80EE for Tax Benefits?
    Please provide me reply.

  100. R KUMAR says:

    Respected Sir

    Greetings

    I had availed HBA loan from Canara Bank during 2004 and the interest on the loan amount is Rs. 75,000/=. Now I am planning to go for Home Improvement loan for Rs.7.5 Lakhs. with repayment period of 5 years. I would like to know whether Interest on Home Improvement is eligible to claim 100 % Income Tax exemption. Kindly clarify please.

    Regards

    R KUMAR

  101. anji says:

    Please give advice:

    Recently I have purchased a plot (not flat or house) by taking LIC housing finance
    .

    Can i get Section 80EE Income Tax Benefit on Home Loan Interest?

    Thnaking you

  102. Amit says:

    Please give advice:
    I purchased a flat taking home loan & getting income tax rebate facility (Flat & Home loan in my name).
    Recently I have purchased a new one by taking joint home loan with my wife (Flat & Home loan in joint with my wife). .Wife is housewife & having no income.

    All flats are in vacant condition (No rent).

    Q1. Can i apply for income tax rebate against the 100% of principle & interest amount of joint home loan of 2nd property as wife has no income?

    Q2.As there are no rent in both flats then have i to pay any income tax aginst these property?

  103. Monu Kumar Choubey says:

    Hi, My Concern is somewhat different. We have taken the property on my Mother’s name and she is home maker. My Father is retd. Army. I have taken the complete loan to construct the flat from LICHF. I am working for MNC in Bangalore. How can i avail the tax benefits..? Because my finance team wants that property and loan both should be on my name. Can i claim it by ITR..? That shouldn’t be the fraud with government. Please mail or comment me. Thanks.
    Monu Kumar Choubey

  104. Dr.T.C.ANANDA says:

    I am PSU employee working SAIL
    I am providing with Companies quarter.

    Now, I have purchased the build up individual house for which I have taken home loan Rs.56.00 lakhs.

    I have given this house for rented for Rs.8500/- per month.

    my annual interest on home loan is around 4.5lakhs to 5.0 lakhs.
    my annual income on this property is Rs.1.02 lakhs.

    please suggest me
    1) how much interest amount of Home loan is rebatable to my salary income.
    2) if I show my house income also to my income. then how much interest amount of Home loan is rebatable to my salary income.

    thankin you

  105. ramya sree says:

    I would like to know whether one cam claim deduction under section 80ee if one owned a residential flat on his name but sold it and purchased a new flat in year 2013-14

  106. Kaushik says:

    Is there any maximum cap on Housing loan or property value beyond which Housing loan tax benefits u/s 24 or u/s 80C cannot be availed?

  107. M Praveen Kr says:

    I have loan sanction date of Sep 2009 for amount of Rs 15 lacs and pay EMI on that. The flat us not yet taken over. pls advise if i will get rebate in income tax

  108. Muthukumaran says:

    For claiming under section 80EE. I am fulfilling all the conditions except the house/flat has not been handed to me till date. I paid only pre-emi interest from Jan 14 to Mar 14 and not principal amount. Kindly clarify

  109. Boregowda says:

    In 2011,i have taken housing loan from LIC finance Rs 16,70,000 /- (4,700,00+12,00,000) and i am paying interest of Rs 1,85,000 annually,can i get benefit up to 2lack interest rebate ?? and if so under which section i can get benefit ?? please reply to this question ..

  110. Mrinmoy deb says:

    Sir,I have taken a house loan in the year 2008.and I am paying 51000 approx for the house loan interest amount.please clarify me if I am able to claim rebate under section 80EE

  111. vimal says:

    I took a loan of rs 20 lacs.and paid interest of rs 1lac 30 thousand in the financial year 2013-14.apart from act 24,how will i get the benefit of act 80ee

  112. gaurav says:

    I have booked a flat in 2012 (pre-launch).
    The handover is in March 2015
    The project got all approvals in March 2013 and my home loan was sanctioned in April 27, 2013. After that bank started disbursing as per the demand from the builder. Till march 2013 the bank had disbursed 15 L to the builder. Since I was given exemption for 18 EMI’s my EMI will start from December 2014. But I had started paying interest to the bank since May 2013.
    For FY 2013-14 I have paid 50k as interest. Can I claim it in 80EE.

    Thanks

    Gaurav

  113. Sumit says:

    I have taken a home loan for a property under Government Housing Board. As on date the construction has yet not started, Whereas I am paying EMI’s worth 25 k from the past 13 months. Am i eligible for tax benefit. If not kindly explain will the EMI’s i am currently paying will go unaccounted for. Will these not be falling in any rebate

  114. Aron says:

    I took home loan from March 2014 and got possession by September 2014. Can i claim HRA from April 2014 to August 2014 and also claim the interest deduction of 2 Lakhs for the financial year 14-15?

  115. Lakesh says:

    Virender, Sir provisions of Sec-80EE not clearly specify but as per my view we should claim both deduction of interest payable u/s 24(b) and 80EE provided that we have complied with all conditions. We can claim HRA deduction whether we have own self residential house property or not, however property must not be in same city/place of your working place and you are paying house rent.

  116. Lakesh says:

    Iswar.Sir, You are not able to get deduction u/s 80EE because to get deduction we have to comply with all conditions specified in Sec-80EE. However you can claim U/s 24(b). on payable basis.(Maximum limit to take loan is 25 Lacs)

  117. Mathew says:

    Hello;

    If the house is jointly owned; e.g. husband and wife, then
    A) Can they each claim 1 lakh benefit ( only if house value less than 40 Lacks)

    OR

    b) Can they claim 50 thousand each as benefit and the house value could be 80 lakhs ?

    Loan amount 25 Lakhs

  118. Lakesh says:

    Dhananjay,Sir Deduction claimed u/s 24(b) or 80EE on payable basis. as you said you complied with all conditions of 80EE then you can claim interest paid/payable upto 31.03.14.

  119. Lakesh says:

    amar ante, No Sir.

  120. amar ante says:

    Is section 80ee applicable for under-construction properties?

  121. Lakesh says:

    swapneel, Sir as per provisions if you working in same city in which you have house property,then you are not able to get HRA. If your working place is so far from your residence & commissioner allow then you may get.In given case, as per me you can get hra benefit & pay tax on rent received from ahmadnagar. And you can claim interest payable (Without Limit).

  122. Virender says:

    Sir, One of my client is in service and claiming HRA exemption. He booked a flat after took Home Loan. Can he claim Exemption u/s 24 and if yes,then what would i select self-occupied/let out in ITR Form because he is also claiming H.R.A. Exemption in his Form 16 . If not, Can he take benefit of sec. 80EE instead of sec. 24?

  123. iswar says:

    sir, this is a doubt regarding section 80(EE)
    i have booked a flat whose cost at the time of booking is around 34 lakhs
    i did the booking in feb 2014
    by taking a loan of rs. 267500
    i am fulfilling most of the condition except the 25 lakh loan cap
    is there any way so as to avail this benefit a kind of tax planning so that i can get the exemption of 1 lakh this fin year (ay 2015-16). the flat is in the construction stage
    i expect your reply
    thanks

  124. Dhananjay says:

    I was sanctioned home loan in FY 2013-14 and fulfill all the criteria for claiming deduction under section 80 EE.
    I have paid pre emi of Rs. 75000 in FY 2013-14 and i got the possession on March 30 2014.
    How can I claim pre emi for AY 2014-15
    Since my EMI starts in FY 2014-15, can i claim interest deduction under section 24b as well as 80EE in AY 2015-16

  125. swapneel says:

    Dear Sir,

    I am a salaried person and get the HRA. I have bought a house in pune in 2012 with borrowed capital and i am staying in ahmednagar on rental basis. I have purchased another house in ahmednagar with borrowed capital in f.y. 2013-14 and got the possession in March 2014. till then i have stayed on rental basis and paid rent. I am earning rent on pune flat and claimed full interest on that loan. Please advise me on interest on loan for ahmednagar flat and HRA exemption. Can i claim full interest on ahmednagar flat or Rs. 1.50 lacs applicable to self occupied property. or can i show ahmednagar flat as deemed let out property with nil gross annual value and full deduction of interest amount which is above the limit of rs.1.50 lacs

  126. Lakesh says:

    Ankish Chaudhari, Sir this section gives the benefit only when we purchase or acquire house property, not for construction.

  127. Lakesh says:

    saravanan Sir, Yes you can’t avail.

  128. Lakesh says:

    Itee Sir, As you said your loan sanctioned before March,2013. So you are not able to get deduction u/s 80EE, However you can claim U/s 24(b).

  129. Lakesh says:

    Munde Dnyanoba Sir,Home loan taken first time not only the basis to get benefit of section 80EE. To get deduction we have to comply with all the specified conditions.

  130. NS says:

    Thanks Krishna Krishnan.

    1. I stay in a flat in Mulund which is in my father’s name. Now I am planning to buy a property jointly with my wife in thane or Mulund. We both plan to take a joint loan. I don’t intend to stay in the new flat and it’s for investment purpose. Will put the same on Rent.
    a. Does the home I purchase, qualifies as Second Home.
    b. Is there a restriction of Jurisdiction to qualify it as 2nd Home? Like is it necessary that both the houses shouldn’t be in the same city.
    If yes it qualifies for the 2nd home, then
    2. My Loan amount would be approx. 80 lacs
    So will the below is legally advisable to save tax
    a. Claiming HRA exemption on 1st flat (which is in fathers name)
    b. Claiming total interest component as tax exempt (say 6lacs).
    Also I suppose the income arising from rent of the 2nd home is taxable, i.e. 70% of Total rent (assuming 30% can be shown as Municipal taxes, repair and society maintenance). Can it be net off against the Interest paid on home loan? Also if it’s negative then can it be deducted from the taxable income?
    Rent received annually 1.5 lacs
    Minus Municipal tax, repair and maintenance 0.45 lacs
    Net Rent Income Taxable 1.05 lacs
    Minus Loan Interest Component 6 lacs
    Net Income Taxable – 4.95 lacs
    e.g

    c. Can both (me and my wife) of us claim exemption on the 4.95lacs?? IF no, then it has to 50-50 or in the ratio of EMI paid?
    d. Is it that, the second house gets no tax exemption on principal (1.5lacs)?. It receives only tax exemption on interest.
    e. Can any amount that is left over may be carried forward in the tax return as loss from property to the next year? As years go by and the loan gets paid off, the interest component that is getting set-off against the rental income each year will keep on reducing. On the other hand, typically, the rent would tend to increase each year or at least once every 2-3 years. This will go on to lead to a positive differential between the rent received and the interest paid and this difference would be taxable. At this point, I Suppose the carried forward interest will be useful to reduce tax liability. (it is mandatory to file the tax return by July 31 (for individual taxpayers))
    f. Even if the 2nd Home is not on rent and kept unoccupied do I need to pay tax on Notional Rent?
    g. Additionally, if you give your second house on rent for more than 300 days in a year, it will not be subject to wealth tax, which is levied at the rate of 1% on wealth that is in excess of Rs 30 lakh?
    h. In case the second house is under construction, 20% of the interest paid during the pre-construction phase is also allowed for tax exemption. However, this benefit needs to be taken within 5 years.??

  131. Ankish Chaudhari says:

    Hello, As per my understanding, I am a fit case to avail section 80EE. My Loan Sectioned amount is Rs. 25 Lacs. Property value is 39 Lacs. Loan was sectioned in FY 2013-14. Now, I have following two questions:
    1. Property is still under construction. Will it stop me availing 80EE benefit. The entire EMI is PRE EMI interest of Rs. 33,000.
    2. If I am eligible for section 80EE, do I need to submit any document to IT Dept or just mention the deduction amount of PREEMI i.e., Rs. 33000.
    Thanks in Advance.
    Ankish

  132. Itee says:

    I was sanctioned home loan before march 31 2013 and fulfill all the criteria for claiming deduction under section 80 EE.
    I have paid pre emi of Rs. 75000 in FY 2013-14 and i got the possession on March 30 2014.
    How can I claim pre emi for AY 2014-15
    Since my EMI starts in FY 2014-15, can i claim interest deduction under section 24b as well as 80EE in AY 2015-16

  133. Munde Dnyanoba says:

    Sir,
    I have taken home loan at first time in FEB-2014 from LICHFL of Rs.2490000/-fromPune and booked Flat for Rs.3500000/- on My & my sons name (joint Registery) Possession has been likely to be in Mar-2014.can cliam income tax benifit on intrest for me only

  134. Lakesh says:

    saravanan Sir, to get deduction of Sec-80EE, we have to comply with each & every condition,therefore you are not able to get benefit of section 80EE.

    • saravanan says:

      Under 80 EE i have complied all condition except only one i.e laon amount only 26.8 lac, whether i am eligible to apply under this 80EE since condition says not more than 25 lac.

  135. saravanan says:

    Hi i have taken teh loan and wnat to file returne during that time there is 80EE query,

    i have taken teh loan amount of 26,80,000, and my house cost is 33.5 lac and rest of the points are eleiglble

    1. Purchaser should be first time buyer. i.e. he has never purchased any house and now he is going to purchase a house. i am first time
    2) Value of the house should not more than 40 lakh. less than 40 lac i.e 33.5 lac
    3) Loan taken by Individual for the purpose of buy a house should not be more than 25 lakh. loan amount is 26, 80, 000 only this point is excedding above 25
    4) On the date of sanction of loan individual does not have any own residential house property. i do not have
    5) Loan for this purpose taken by individual should be from the Financial Institution or Housing Finance Company. yes it is LIC
    6) For this purpose, loan should be sanctioned between 01.04.13 to 31.03.14. yes loan taken in this tennure

    pleasae advice whether i can delcare under 80EE in current FY2014-2015?

  136. sivaram says:

    Sir,

    I have two housing loans.

    I availed first loan in 2002 in Bangalore for 5.95 lakhsand my parents are staying in this house.

    I avialed second loan in June 2013 in hyderabad for 43.58 lakhs and this is under construction and will be occupied by June 2015.

    Iam staying in rented house near to my office now.

    Iam paying total interest on botgh the housing loans is about 3,45,000 in FY 14 – 15.

    Please inform me that how much exemption will get under interest paid.

  137. Jagadeesh says:

    Hi,

    Mine is composite loan and i’m been paying interest from last may 13 and i have started construction now and it would be completed before Dec 14. so please let me know whether i can declare Interest on Housing Loan(24) & 80C – Principal Loan Repayment (Housing Loan) in current financial year.

    I would be acquiring to my new house by Jan/Feb 14. so even i would be able to produce acquire certificate to my employer by that time.

    My employer deducting my IT on monthly basis so if i declare it now them i can save some money.. looking forward to hear from experts.

    Thanks and regards
    Jagadeesh R

  138. Ashutosh says:

    Hi,

    I worked in two organizations in different cities in last financial yr, i.e. from April’14 to Aug.’14 then in another city and organization from Sep.’14 onward.

    My query is as I didn’t claimed my house rent in my previous organization and they deducted tax on HRA also now the rule from Oct.’14 onward is Lakh limit on the rental amount when PAN card of the landlord is not required.

    The rent reciept which I have from my previous landlord doesn’t carry any PAN details.

    When I calculate house rent for whole year it sums up to more than 1 Lakh, please suggest how to get Tax benefit while filing the return in July.

    Regds,
    Ashutosh.

  139. Lakesh says:

    Bandana, According to me loan taken for purchase of property,Interest on housing loan is expenditure in acquiring the asset & it can be capitalised as cost of asset.

  140. Lakesh says:

    Nitin Sir, Tax deduction for the payment of interest shall not be allowed before the construction is complete. However pre-construction interest can be claim in five equal installment from the year in which construction is complete u/s 24(b).We can not claim interest deduction for under construction property u/s 80EE.

  141. Nitin says:

    My loan was sanctioned in January 2014, and upto March 2014 Pre construction Loan Int of rs 40000/- was paid and final disbursement was in April 10 i.e. next financial year so how can i take the benefit of Section 80EE.
    Please advice

  142. Bandana says:

    If I sell a property for which I am paying home loan EMI before registering the property in my name, can I consider the interest component paid till date as a cost of property/acquisition while calculating long term/short term gain.

  143. Lakesh says:

    Sumit Jain, You can get deduction u/s 80EE in F.Y. 2013-14 of Rs.70000/- and in F.Y. 2014-15, maximum interest deduction u/s 80EE is available of Rs.30000/-

  144. Lakesh says:

    Hari Sir, You can claim interest & principle amount on both properties subject to some conditions.

  145. Lakesh says:

    rohit Sir, As you said you got loan FAB 2013, then you are not able to get deduction u/s 80EE

  146. Lakesh says:

    Rupesh Mehani,Sir you are not eligible to get deduction u/s 80EE.

  147. Rupesh Mehani says:

    Sir,
    In Dec-2008 I had purchased a flat on both husband & wife’s (I husband was the first name & wife was the co-borrowe at Kanpur with HL of 1600000/- from SBI & sold out in 2012. With that whole amount now I have taken another flat on both husband & wife’s name ( here my wife is the first name & I husband is the co-borrower) with HL of Rs 3500000/- from SBI at Goa in Jan-2014.
    Can I/we avail the benefits of Section 80EE ?

  148. rohit says:

    Dear Mr Lakesh,
    I have read all the comments & found then usefull, I still have a question. I fulfill all the below mention creiteria…
    ◦Purchaser should be first time buyer. i.e. he has never purchased any house and now he is going to purchase a house. (applicable)
    ◦Value of the house should not more than 40 lakh.(30L, applicable)
    ◦Loan taken by Individual for the purpose of buy a house should not be more than 25 lakh. (23.7L, applicable)
    ◦On the date of sanction of loan individual does not have any own residential house property. (1st loan, applicable)
    ◦Loan for this purpose taken by individual should be from the Financial Institution or Housing Finance Company. (Nationalised Bank, Applicable)
    ◦For this purpose, loan should be sanctioned between 01.04.13 to 31.03.14. (The 1st amount release from the Bank to the builder is on FEb 2013, doubtful)
    Please let me know whether I am eligible for this claim or not. Thanks in advance

  149. Hari says:

    Hi,

    I have two houses one is self occupied and second one is let out. Can I claim the interest of both property.

    1) Loss of income of first house after (Rent income and standard deduction) = (-)3,00,000
    After tax deduction of 1,50,000 = (-)1,50,000

    2) Loss of income of second house after (Self occupied) = (-)3,30,000
    After tax deduction of 1,50,000 = (-)1,80,000

    Total Loss on income + Tax deduction on interest
    (-)1,50,000 + (-)1,80,000 = (-)3,30,000

    Can we claim the principal of 1st or 2nd house ?

  150. Dhananjay Bhamare says:

    Whether the date/year for application date for home loan u/s 80EE (currently FY 2013-14) got extended during latest budget by UPA government?

  151. sandhya pandit says:

    Where to be shown section 80EE in form 16

  152. Sumit Jain says:

    F.Y 13-14 if bank charge me interest amount 220000.00 then can i get the interest benefit u/s 24 amount 150000.00 plus u/s 80EE 70000.00 and if in next F.Y they charged me interest amount 200000.00 then what is the amount of deduction u/s 80EE?

  153. GAURAV KAPUR says:

    I had taken a Home Loan from HDFC Ltd. for Rs.12.60 Lacs in Year’2008 and want to avail the additional benefit of U/s 80EE. Whats the procedure of the same as my repayment schedule as follows:
    Principal – 65000/- p.a
    Interest – 120000/- p.a

    Can i pay extra interest amount for obtaining benefit of u/s 80EE.
    Secondly, i want to reduce the ROI and HDFC is charging “Conversion Fee”. Will i get the benefit of this fee in income tax.

  154. Dinesh says:

    Dear Lakesh,

    I got a question.

    I had constructed a house at my home town and I took a loan for Rs.15 lacs.

    What all deductions can I get?

    I plan to rent out this property as I am staying away from my home town.

    So do I show my Rental income +Salary income and claim deduction under 24 1 and for Principle amount?

    Can I avail deduction under 80 EE also? Loan was sanctioned Dec 2013 last year and fully disbursed to me on April 15th. 2014

    Please advise

    Dinesh.

  155. YATI says:

    Hi Team,

    I purchased a DDA LIG Flat in 2012 by taking loan of 1700000 for 20 years from HDFC. Now i am transfering my loan to another bank and lessing the tenure to 12 years . Will i be eligible for a 1 lakh additional tax rebate under Section 80E.

  156. Mandeep Sharma says:

    Hi,
    I & my brother took load of 24lacs from LIC housing finance and my brother is getting tax benfit from them is it possible that bothof us will get the tax benefit as monthly installment paid by my brother’s account only.

  157. Atul Choudhary says:

    Hi Lakesh,

    Greetings of the day !!!

    I fall under all the pre·requisites of Section 80EE Income Tax Benefit on Home Loan Interest however, my loan got sanctioned on April 11th, 2014 so I’m debarred from this benefit.

    Query:

    • I just need to confirm that whether I should fill my Income Tax
    declaration under 80EE or Other Income/Loss from House.

    • I’ve given my house on Rent for Rs 10,500 per month & paid Pre-EMI of
    Rs 13,901 (actually paid 14,463/- as Rs 562/- was for Govt. surcharge).

    • For tax benefit over Pre-EMI, do I need to declare only 1/5th of
    Pre-EMI for 5 years. (14,463/5 = 2892.60/-)

    PS: I’ve sent you an E-mail with all the screen-shot details.
    Please revert once you get time.

    Thanks,
    Atul Choudhary

  158. Karan says:

    Loan taken: Individual
    Total Loan Amount: 2039105 Lakh
    Loan approved in November 2013
    First monthly installement in December 2013
    Total Principal paid in 2013: 10600 INR (From December to March 2013)
    Total Interest paid in 2013: 69196 INR (From December to March 2013)

    Total Principal to be paid in 2014: 31800 INR
    Total Interest to be paid in 2014: 207588 INR

    I have not declared anything under 80EE in 2013.

    Also, I fulfill all the below conditions:

    1) Purchaser should be first time buyer. i.e. he has never purchased any house and now he is going to purchase a house.
    2) Value of the house should not more than 40 lakh.
    3) Loan taken by Individual for the purpose of buy a house should not be more than 25 lakh.
    4) On the date of sanction of loan individual does not have any own residential house property.
    5) Loan for this purpose taken by individual should be from the Financial Institution or Housing Finance Company.
    6) For this purpose, loan should be sanctioned between 01.04.13 to 31.03.14.

    How much I can declare under 80EE in current FY2014-2015?

    Thanks

  159. Lakesh says:

    Tarun Sir, As you said that your mother owner of the property, in this case you can not get deduction.However you can avail if you are co-owner of the said property.

  160. Tarun says:

    Dear Lakesh,

    I have bought a House of Rs 40 Lakhs on name of my mother. House Loan is taken by me along with my mother as Co owner. Sanction of loan of Rs 20 lakhs is done on 31 March 2014. Whether I am eligible for above mentioned Deduction under section 80EE. Pls ensure that House is on name of my mother only.

  161. Lakesh says:

    Arijit Sir, You are not able to get deduction u/s 80EE, because you took loan more than prescribed limit. (25 Lacs).

  162. Arijit says:

    sir,
    me and my wife had taken a joint loan of 29 lakhs, the property value is around 37 lakhs. We(me and my wife) have a re-payment agreement of 60:40 and this is the first property for both of us. Can we avail tax exemption under section 80EE. If so then what is the procedure.

    Thanks and Regards
    Arijit

  163. Lakesh says:

    Anand Gajakos Sir, Allotment of house is also considered as under construction house till completion of construction & when you will get certificate of completion.In this case you are not eligible to get deduction U/s 24(b)(upto completion) & 80EE.

  164. Lakesh says:

    Manoj Nay Ir Sir,Benefit of this section available for acquisition of House Property not for construction.

  165. Manoj Nay ir says:

    Can i avail 80EE benefit for the load taken for the purpose buying plot for house contraction. Its SBI reality loan and house construction alread completed.

    Please advise.

    Thank You
    Manoj

  166. Anand Gajakos says:

    I have purchased a flat with SBI home loan of 40,00000 Rs possession of the flat is in march 2015
    I m paying EMI of Rs 39000 from April 2014
    Can I get home loan tax benefit during this financial year and how much

  167. Lakesh says:

    Sanket Sir, Yes you can invest Rs.1 lac in PPF A/c. but according to me you should Invest in more schemes not only in PPF . If you asked for rent receipt by your employer then you should make any adjustment for rent receipts.

  168. Lakesh says:

    Anand Patole Sir, Deduction U/s 80EE is a separate deduction for interest on home loan(Max. 1 Lac) ,it is not related with 80C.

  169. Lakesh says:

    Bharathi Sir, Any property must not be registered on your name prior to the date of sanction of the loan.

  170. SURESH KUMAR S says:

    I had existing property bought 5 years ago. I have bought a new flat costing 28 Lakhs in April’14. I Loan had taken a loan of Rs 25.47 lakh.(including value of Life Insurance & House Insurance & Morgate Charges ) The loan was sanctioned and disbursed in April 2014.

    My queries

    1) Can I avail benefit U/s 80C for principal amount repayment.
    2) Upto what amount I can avail rebate under Sec 24 of IT Act.
    3) Can I avail benefit U/s 80EE for interest repayment.

  171. ashvinder says:

    sir,
    me and my wife had taken a joint loan from ban of maharastra in april 2013 which amounted to be 29 lakh approx my property is under construction property i had paid my 20% share demand for next part has come in april2014 can u suggest how to minimise my tax this under construction property will take atleast 3yrs to complete should i pay more emi to get deducation under 80c or pay emi acc to demand as it comes thnks

  172. sanket says:

    hi, suppose i need to make investment of 1,00,000 to avoid giving tax to govt. HRA is part of my salary component. is it ok if i put entire 1,00,000 in PPF account ? so that i dont have to submit rent receipts and all. will i get HRA component as it is ? or still tax will be charge on HRA ? pls note i only need to invest 1,00,000 rs which i have put in PPF.

  173. Anand Patole (Pune) says:

    this deduction including in 100000/- limit u/s 80c.if interest amt 70000/- & lic pf amt 60000/- than total amt Rs 130000/- deduction allowed.
    Separate 80EE Deduction amount Allowed limit of Rs 100000/- or 150000/- in year

  174. Bharathi says:

    Hi,

    I have availed loan for 23L and I am fully eligible for 80EE as per criteria. I have proof for rest of the criteria except First time buyer.Could you please clarify me how do I provide proof that I am a first time home buyer?

    Thanks in advance.

  175. Lakesh says:

    Vijay Sir, Yes you can claim interest deduction U/s 80EE of Rs.69000/- in addition to the 1,50,000/-

    2). Your wife can claim only when-
    a). She has other source of income &
    b). She is also co-owner & co-borrower

  176. Lakesh says:

    Niel_N Sir, 1). Yes, you can avail the benefits u/s 80C for the principal amount.
    2). For self occupied property you can get deduction U/s 24(b) Max.1,50,000/- (Non Self Occupied –No Limit)

    3). U/s 80EE you are not able to get because you have taken loan more than Limit (25 lacs) & other reason is that this is your second house property.

  177. Lakesh says:

    Jayant Sir, As per my view you are not able to get because according to provision, on the date of sanction of loan individual does not have any own residential house property but you purchased house in 2012.It is just transfer of loan from one bank to other in the f.y. 2013-14.

  178. Niel_N says:

    I had existing property bought 8 years ago. I have bought a new flat costing 30 Lakhs in Feb’14. I had taken a loan of Rs 25.25 lakh. The loan was sanctioned and disbursed in January 2014.

    My queries

    1) Can I avail benefit U/s 80C for principal amount repayment.
    2) Upto what amount I can avail rebate under Sec 24 of IT Act.
    3) Can I avail benefit U/s 80EE for interest repayment.

  179. vijay says:

    Hello Sir,
    I have availed the Loan from ICICI Bank and I’m the First time buyer.
    My Loan amt of 23 Lakhs (CO-Owner My Wife) was sanctioned on Mar-14 along with possission and The First EMI is Due in Apr-14.
    Total Principal 66,000 and Intrest 2,19,000/-
    Under 80C Principal :66,000
    Under Section 24 (Income / Loss / Others) :1,50,000
    Can you please answer my below queries.
    1) Can I show the Addionnal Amt of 69,000 ?
    2) Can this be cliamed by my wife ?

  180. Jayant says:

    Hi Lakesh,

    I bought flat in may 2012 with help of HDFC’s loan of 19 lakh 40 thousands.
    I recently transferred loan from HDFC to SBI.
    SBI loan of 19 lakhs is sanctioned before 31 Mar 2014.
    This is my first and only house.
    can I claim tax benifit under section 80EE.

  181. Lakesh says:

    Chintan Sir. You are not able to get interest & loan processing fees deductions u/s 80EE, because you took loan for the purpose of construction.

  182. Chintan says:

    Hey Lakesh,

    I got loan disbursed in AY. 14-15.
    But the property is “under-construction” and will get occupation in AY. 15-16.

    Queries:
    a)Can I claim any interest deduction under 80EE for AY. 14-15?
    b)Can I claim loan processing fees under 80EE for AY. 14-15?

  183. Lakesh says:

    Amar Ante Sir,section 80EE does not apply on loan taken for construction of property.

  184. Lakesh says:

    Murali Sir,in response of your query-

    1). You can get deductions u/s 24(b), 80C and 80EE. &
    2). You also able to avail the benefit of HRA at a same time.

  185. amar ante says:

    I have borrowed home loan in fy 2013-14 for under construction property. Since construction is not complete and it satisfies the conditions(loan for First home, 10 lakh loan and 21 lakh property cost, santion in Sept 2013) may I take benefit of section 80 EE only? (section 24 cannot be used since it under construction property). I have doubt because it says that ‘additional deduction’.
    Thanks

  186. Murali says:

    Hello Lakesh…

    I am staying in bangalore in a rented house for 10.000/- .
    Recently I have bought a house in my home town(AP) for my parents.
    This is my first housing loan and the property cost is 31 lakhs, the home loan was sanctioned in January 2014 for an amount of 22 Lakhs.

    1. Am I eligible for tax deductions under both 24(b) and 80EE sections (2,50,000)?
    2. Can i claim HRA(1,20,000) from my employer at the same time (Since, my parents are staying in new house and it is not let out property)?

  187. Lakesh says:

    Jailash Sir, You are eligible to get interest deduction, maximum Rs.1 Lac U/s 80EE only for the A.Y 15-16, not beyond this.

  188. jailash says:

    hi sir

    i purchased home for 35 lakhs.
    loan of 24 lakhs got and approve in march 20 2014.
    emi will start from april 2014.
    interest for next financial year is 2lakhs.
    also this is my first home so iam eligible for 80EE.

    Can you tell me wat are the tax benefits i get. I can use the tax benefit for next year only right 2014-2015.?

    regards
    Jailash

  189. jailash says:

    hi sir

    i purchased home for 35 lakhs.
    loan of 24 lakhs got and approve in march 20 2014.
    emi will start from april 2014.
    interest for next financial year is 2lakhs.
    also this is my first home so iam eligible for 80EE.

    Can you tell me wat are the tax benefits i get. I can use the tax benefit for next year only right 2014-2015?

    regards
    Jailash

  190. Lakesh says:

    Tapan Sir, if you complied with all the conditions to get deduction, then you can claim deduction of interest payable as on March,2014.

  191. Tapan says:

    Hi, My loan sanctioned in feb2014 and first disposal is going to happen in 1st week of April. My property value is 258000 and loan amount is 180000. Kindly let me know whether I can avail the tax benefits under section 80EE as my loan sanctioned in 2013-2014 financial year ?

  192. Lakesh says:

    TANAY SAHA Sir, I think you can not get deduction of Rs.11,000/- u/s 24(b) because this section allow deduction only for interest payable for the year. But definitely you can get deduction of aforesaid amount u/s 80EE.

  193. Lakesh says:

    Prashant Sir, I am considering this question separate because i dont know how many properties you have. As per my knowledge there is no such provisions relating to interest deduction as your account depatt. said. According to me, you can get interest deduction . If your Acct. Deptt. said then please ask him which section contains such provisions.

  194. Lakesh says:

    Prashant Sir, AS per my opinion you can consider surat flat as self occupied (but no other benefits derived from surat flat) & for this you can avail Max. interest deduction of Rs. 1.5 Lacs.

  195. prashant says:

    Sir,
    I have purchased a residential property in pen which is 30 KMS away from my company township where i stay in company’s family accomodation and company has included my accomadation value in my gross salary and they are not considering my Home loan interest paid for deduction under section 24. My accounts dept is saying that as you stay in company accomadation and the property is less than 500 KM away from the company township, you can not avail the benefit of section 24 and other thing till date i ahve not given the property on rent. Is it so?

  196. Lakesh says:

    TANAY SAHA Sir, 1). yes you can claim interest deduction of Rs. 50940 u/s 80EE in A.Y 2015-16.

    2.) You should claim Rs.11000/- deduction in A.Y.14-15 u/s 80EE even employer din’t show in form 16.If you get deduction of Rs.11000/-in A.Y.14-15 then also in A.Y.15-16 You are able to claim interest deduction u/s 80EE of Rs.50940/-

    • TANAY SAHA says:

      thank you very much Lakesh Sir,
      can this processing fees of rs 11000/- which is not included in my tds of my employer in (FY13-14 AY 14-15) be claimed deduction under section 24b , because the limit of Rs 150000/- is not utilized in this year . i am utilizing only 34000/- this year
      or i should claim rs 11000/- deduction under section 80EE as you advised .

  197. Lakesh says:

    Prashant Sir, As per my opinion you should consider flat(surat) as self occupied (but no other benefits derived from surat property) & afterword you can claim deduction of interest max. 1.5 lacs.

  198. TANAY SAHA says:

    Sir i have taken Rs 1980000/-( Nineteen lack eighty thousand only) house building loan from HDFC for purchasing of resale flat at Howrah .
    My Loan got sanctioned on 2nd June 2013.
    The value of the property is Rs 2200000/-( Twenty two lakhs) .
    Disbursement of the loan ( full amount ) is on 31.01.2014 and acquisition date is on the same date .
    My interest component of EMI for the Fy year 13-14 ( Assessment year 14-15) is Rs 34000/- ( which i am calming deduction under section 24 b) and principal is Rs5000/- ( claim deduction under Section 80c) in this financial year i am not utilizing the benefit of rs 100000/- deduction under section 80EE.

    Next financial year FY 14-15( AY 15-16) my interest is Rs 200940/- Principal is Rs 32297/-
    Now my question is
    1) As i have not utilized the 1 lakh extra deduction limit under 80EE in last financial year so can i avail Rs 50940 deduction ( 200940-150000)under section 80EE in the FY 14-15( AY 15-16) after availing the 150000 under section 24 b and Rs 32297 under section 80c

    2) i have paid Rs 11000/- as a processing fees for my loan sanction to the bank on 2.06.2013. the same amount can i claim for tax deduction under 24b in the current financial year 13-14. Actually the amount is not included for TDS calculation in my office . so after issuing the form 16 from my employer ( where this 11000/- is not shown) can i claim while filing the income tax return for the AY 14-15

  199. Lakesh says:

    Prashant Sir, Yes you can consider the flat(surat) non self occupied ,if you have another house property in that place where you are working.If you consider the flat (surat) as non self occupied then you can claim deduction of interest Rs.1,90,000/-.

    • Prashant says:

      Lokesh sir,

      i own the house(flat) in surat but i reside in government quarters in other city. still i can be considered as NON SELF OCCUPIED for Surat flat. and I can deduct Rs. 190000 for income tax.

  200. Prashant says:

    Sir,

    I have a query regarding Home loan interest deduction.

    I purchased a flat in surat, but I dont live in surat. I pay Rs 1,90,000.00 as Interest yearly and Rs. 29,000 as principal yearly.

    My question is whether I can be considered Non self occupied. and to what limit i will be allowed to deduct home loan interest be it 1,50,000 or 1,90,000.
    thank you in advance.

  201. Lakesh says:

    Pradeep Sir, you are not able to get deduction because value of house is greater than 40 lacs(Co-ownership doesn’t matter).

  202. Pradeep Swami says:

    Dear Lakesh Sir, thanks a lot for information on Sec 80EE.
    I along with my brother have purchased a house property worth 51 Lacs.
    Loan Amount is 40 Lacs which is sanctioned during FY 2013-14. As Home loan Interest deduction is per person and not per property, can we claim deduction under Section 80EE, treating the property half owned by each of us, i.e. 50% of House Property amoount is 25.5 Lacs and loan amount will also be 20Lacs.
    Please guide.

  203. Lakesh Kumar says:

    Mr.Nitin , In response of your query you are able to get benefits of HRA & Interest payable on loan. Maximum limit of interest deduction for self occupied is 1.5 lacs.

  204. Nitin says:

    Hi !
    I am residing at Delhi. I am paying rent of Rs 20,000 per month. I am about to buy a flat at Ghaziabad(U.P.) for my parents. I will take a home loan of Rs 25 Lac for this flat.
    Kindly let me know if I can avail tax benefits for HRA as well as on interest paid to Bank. I will continue living at my Delhi property while the one at Ghaziabad will be used by my parents. Value of flat at Ghaziabad will be approx 50 Lacs.
    In case. I get benefits of interest payable on Home loans, Is there any limit to the same?

  205. Lakesh says:

    Mr.Vishal,According to me “you and yours wife are not able to take benefit of Section 80EE because Loan sanctioned by finance comp.to purchase a house is more than limit 25 lacs(whether yours wife first buyer)”.

  206. Lakesh says:

    Mr.Kumar, Sir, you are not eligible to take benefit of Section 80EE , because the value of the house & limit of loan sanctioned is beyond the conditions.

  207. Lakesh says:

    Mr.SIVAKUMAR.M.R. Its depend upon the ownership of the house property. According to me u/s 22 of Income Tax Act.owner of the property can claim deductions.

  208. Lakesh says:

    Mr.Balram Sharma, I am assuming that you have read all the conditions of this section. If you purchased a under construction house then you are not able to avail the deduction u/s 80EE

  209. Kumar says:

    Hi,
    I am first-time Home buyer (I’m the only earner in y house)
    My house property Value = 60L & i have got LIC housing Loan Sanctioned for 40L (with 10year Tenure) for which already a part of amount started in 2013 Oct onwards, Possession will be in 2015

    Can you please suggest how to I avail Tax benefit ?

    What kind of documents/proof should i submit for availing Tax benefit ?

    Am I eligible for 80EE?

    Regards
    Kumar

  210. Vishal says:

    I have a query regarding Sec 80EE
    Me and my wife have a joint ownership of the property of less than 40 lakhs bought in 2013
    1) I have sanctioned the loan of 29 lakhs although I have only going to leverage 25 lakh. Is it still imp to have the loan sanction 25 Lakhs itself or the scenario I mentioned will work where the sanctioned amount is more than actual leveraged?
    2) This is my second property(no loan taken on the first property), however this is my wife’s first property can my wife avail the additional 1L benefit under sec 80EE if not me ? Also my wife is the first applicant of the Home loan but I am primary owner the property
    Regards
    Vishal

  211. SIVAKUMAR.M.R says:

    Myself and my wife have jointly taken housing Loan . Repayment including interest is paid by me only. My Employed wife is not availing any income tax deduction towards Principal and Interest.Only i am claiming income tax benefits.

    TO whom Declaration for non claiming to be obtained ? from my wife ? Or from her employer ? What are the relevant sections .

    Pls clarify

  212. Balram Sharma says:

    Hi There,

    Pleases help me to understand this as, I purchased under construction house and got Loan sanction amount is 18 Lac. I have submitted interest certificate to my company under 24 section but my company is asking for possession letter from the builder. As per the builder I will get possession offer letter on 2016 only.

    So can I avail this under 80EE Section? Please suggest.

    Thanks,
    Balram

  213. Lakesh says:

    Hello Mr.Tapan , In response of your query you are able to get deduction u/s 80EE because Interest claim on payable basis but deduction on 80C based on paid basis. However total value of house must not be more than 40Lacs.

  214. Tapan says:

    Hi, I am a first time home buyer and booked a flat on 15th Jan 2014 and applied for Home loan for 18 lakhs with IDBI bank. My loan got sanctioned on 12th Feb 2014. the first disposal amount is going to be 15 lakhs on 2nd week of March 2014, so the first pre EMI deduction from my account will happen from April 2014 through ECS. My query is whether I am entitled to get benefit under 80EE as my loan got sanctioned in Feb 2014 though my first payment is in Apr 2014 ?

  215. Mrityunjay Chauhan says:

    Thanks a ton Lokesh for your valuable suggestion. I will check at my end what best I can extract.

    Regards,
    Mrityunjay

  216. Lakesh says:

    Mr.Ashish ji, you are not able to get deduction because loan should be sanctioned between 01/04/13 to 31.03.14. & Date of possession not relevant.

  217. Lakesh says:

    Mr.Amiya Mandal ji, I think you wrote wrong date 10/02/13 (10/02/14) & also you not specify whether loan has taken for acquisition 0r construction. So I am considered as below-

    U/s 80EE- If you have taken loan for construction then you can not take deduction under this section or if you have taken loan for acquisition then you can claim deduction for interest payable subject to some conditions.(Max. Limit 1 lakh).

    U/s 24(b)- if you took loan for construction then you can get deduction from the finance year in which construction will complete. Or loan taken for acquisition of self occupied property then you can avail deduction of interest payable in this F.Y.(Max.Limit 150000/-)

    According to me IF you comply with conditions then you can get deduction U/s 80EE & 24(b). (Max limit 2.5 lacs)

  218. Lakesh says:

    Mr.Mrityunjay Chauhan ji, Its my pleasure to give response all queries.

    1&2).You have purchased a PLOT for house construction, so according to me you are not eligible to claim deduction because we can take deduction in respect of purchase/construction of residential house property but you purchase a land.
    I want to give advice, I think it may be batter, you can get deduction for whole loan U/s80C or 24(b)(loan applied for purchase of land + for construction ) when construction will complete.

    3).If your house not constructed within 3 years then Maximum interest limit (1.5 lacs) for self occupied property will be reduce to 30000/-.

    4).194-IA states that buyer will have to deducted 1% TDS on Immovable property subject to some conditions.

  219. Lakesh says:

    Mr.Amiya Mandal, I think you wrote wrong date 10/02/13, it may be 10/02/2014. So I am considered the date 10/02/14 and also in your query not specify that you have taken loan for construction or Acquisition. So as per my view-

    U/s 80EE- if you took loan for construction than you are not eligible to claim this deduction, or if you took loan for acquisition than you can claim subject to some conditions. (Max.limit 1 lakh)

    U/s 24(b)- you can claim deduction of interest upto maximum limit 150000/-.(for self occupied), however if your property under construction than it can claim in that F.Y.,in which construction will complete.

    If you have taken loan for acquisition & you comply with all conditions of Sec-80EE ,As per my view you can claim both deductions for interest payable.

  220. Ashish says:

    I am the first time home loan taker, i got the possession of the flat in F.y. 2013-2014 but my loan was sanctioned in year 2011-12. Can i get the tax benfit under Section 80EE Of Income Tax Act .

  221. Mrityunjay Chauhan says:

    Hello,

    First of all I would like to say thanks for such a informative portal. Coming to my query.

    I have purchased a PLOT for which I took a loan of approx 9 Lakh from LIC. The EMI is almost 12,000. As soon as I get possession, will start my construction.

    The loan terms says it is Housing loan and also mention one Section 194-1A of Income tax act.

    I need your assistance for following points.

    1. Can I avail tax redemption for my present loan? as this is housing loan.
    2. If not than will I get tax benefits for all my EMI paying once I construct a house?
    3. What if the builder does not give me possession in time and due to which construction get delays beyond three years?
    4. is there any benefit which i can take under section 194-1A

    It will be very helpful if you can take out some time to reply my queries.

    Thanks in advance.
    Mritynjay

  222. Amiya Mandal says:

    I have taken house building loan from State Bank of India on 12/11/2013 for the first time of Rs. 1500000/-. I have re-payed Rs. 13000/- only as interest till the date (10/02/2013). I think I will re pay around Rs. 200000/- as hbl interest in the next financial year. So my Question is whether I will get tax deduction of Rs. 150000 only or of Rs. 200000 as the hbl interest for the next financial year. Plz. reply..

  223. Lakesh says:

    Sir, as I said below this section not clearly says that we can claim additional deduction for interest but as per my view we should claim both deduction U/s 80EE subject to some conditions and U/s 24(b). (Total Deduction 2.5 Lacs)

  224. yuvi surya says:

    if i purchased new house on 1.6.2013 with help of bank loan..can i claim housing loan interest on both u/s 24 (b)(one lakhs) and 80EE (one lakhs).. so totally i claim two lakhs ..is it possible sir..plz explain clearly

  225. Lakesh says:

    Sir, This section not clearly says that we can claim additional deduction for interest but according to me we should claim both deduction U/s 80EE subject to some conditions and U/s 24(b).

  226. Sreejith says:

    Is it possible to claim Home Loan interest under both Section 24 b and 80 EE.
    Like in my case, I pay a total interest of 2,40,000. Out of which I am planning to claim 1,50,000 under sction 24 B and another 90,000 under section 80 EE.

    is this possible ??

  227. Lakesh Kumar says:

    Assessee can purchase any residential property. i.e. it may be non self occupied property & can claim only when, assessee not owner of the property on the date of sanction of loan. It is required that loan should be taken between 01.04.13-31.03.14.If you have taken loan before 01.04.13. than you are not able to claim deduction u/s 80EE but you can claim deduction u/s 24(b).

  228. M.Kochadai Muthiah says:

    Finance Bill , 2013 contain an announcement of additional deduction of interest (up to Rs.100000 )on housing loan for first time buyer [i.e. (i) He has never purchased any house and now he is going to purchase a house. (ii) On the date of sanction of loan, the individual does not have any own residential house property.] state that-

    This deduction will be over and above the deduction of Rs.150000/-allowed for self occupied properties under section 24 of the income tax Act.
    ****
    It seems there is a contradiction in the above announcement by the Finance Minister that deduction u/s 80EE will be available only when the assessee does not own any other house property on the date of sanction of the new loan.Under this condition , how is it possible for the assessee to have borrowed a housing loan already ( i.e.with out owning a house under self occupation )and claiming a deduction u/s 24 of the Act.

    This may kindly be clarified.

  229. Lakesh Kumar says:

    Sir, Tax deduction for the payment of interest shall not be allowed before the construction is complete. However pre-construction interest can be claim in five equal installment from the year in which construction is complete u/s 24(b).Sec. 80EE is silent about the under construction property provisions but according to me we can not claim deduction for under construction property. Because word given in section 80EE is Acquisition.

  230. Paras says:

    If a person has taken home loan and he is paying EMI of under construction home, can he able to get the benefit of 80EE and 24b?

  231. Lakesh Kumar says:

    yes, We can claim deduction U/s 80C

    • c.l.joshia says:

      Please advise me on the following lines :

      H. Loan sanctioned for renovation of house is Feb.2015

      interest and prinicpal amount is being paid w.e.f. march 2015

      Can the borrower (my demised brother) claim the prinicpal and interest portion for f.y.2015-16 and how the amount is accounted for in ITR 1.

      Please help me.

      C.L.Joshia

  232. Balaji says:

    shall we consider the stamp duty and registration charges for income tax exemption

    • UdayRaj says:

      Yes ,we can get Tax exemption on Stamp duty and Registration charges under 80C
      act, but you can opt it only the year which u have done registration , For example ur home/flat registered Mar 2015 ,u will get Exemption for 2014-15 Year only(14 APr-15 Mar)

  233. Lakesh Kumar says:

    Yes Sir, this section beneficial to persons whose budget & value of the house less than 40L.

  234. CA Shivam Gupta says:

    The section aims to promote buyers to purchase house properties. This section is more relevant for small towns where a property can be purchased with a budget of INR 40L.

Leave a Reply

Your email address will not be published. Required fields are marked *