Section 80EEA Deduction for additional Interest of Rs.1.50 Lakh on Loan on Affordable House Property (not on Commercial). New section 80EEA is inserted by Budget 2019-20 presented by Finance Minister in Parliament on 5th July 2019.
Condition for availing Section 80EEA deduction
- Loan Sanctioned between 1.4.2019 to 31.3.2020 from financial institution /HFC
- Stamp Duty Value of House Property (HP) not exceed Rs.45 Lakh
- Not own any residential HP on the date of sanction of loan i.e. 1st time buyer
- when deduction is allowed under Section 80EEA , not allowable in other section
- Only to Individual (not for HUF, AOP etc)
- Rs.1.50 Lakh is over and above Rs.2 Lakh u/s 24, hence total Rs. 3.50 Lakh
- Carpet area of HP not exceed 60 sqmtr (645 sq ft) in metropolitan cities including Delhi NCR & carpet area not exceed 90 sqmtr (968 sq ft) in any other cities
- if a person jointly owns HP with spouse and they both paying the installments of the loan, then both of them can claim this deduction
- Section 80EEA Interest deduction is available from FY 2019-20 (AY 2020-21)
Note;
- Housing for all, the Govt has now extended the interest deduction allowed for LOW-COST housing loans
- This Section 80EEA deduction is over and above Rs.2 Lakh, hence total upto Rs.3.50 Lakh allowable
Disclaimer: This insight is meant for informational purpose only and should not be considered as an advice or opinion, or otherwise, whatsoever. Author does not intend to advertise its services through this insight, and not responsible for any error or omission in this insight or for any action taken based on its contents, its based on Speech / Budget Bill 2019.
……..Compiled by CA. M.S.Prasad, FCA, MBA,LL.B, B.Com(H),
+91 88022 53937, 0120-713 8235, camsprasad@gmail.com
Author Bio
I purchased housed amount rs 5600000.00
Stamp duty paid 683000.00
Am I eligible for rebate under section 80EEA of income tax.
In this section I am confused on stamp duty value in my case it is 683000 or 5600000.00????
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Hi
Bank has provided the loan sanction letter on 19-03-2019, whereas sale deed has happened on 21-04-2019.
whether 1.5 lacs additional amount can be claimed under 80EEA. Also the property purchased is second sale.
one more important point missed here is from the memorandum provided with the bill, it clearly mentions that the additional benifits are applicable only on properties sanctioned after 1st of September 2019.
The assessee should not own any other house property but section 80EEA states additional Rs.150k over and above existing limit of Rs. 200k.
Could not understand