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Additional Income Tax benefits on Housing Loan Effective from AY 2020-21


Additional Income Tax benefits on Housing Loan

                                                Effective from AY 2020-21


Conditions :

    ·    Assessee is an individual.

    ·    Not eligible to claim deduction u/s. 80 EE.

    ·     A loan should have been taken for acquiring residential house.

    ·     Loan should have been sanctioned between 01.04.2019 and 31.03.2020 (extended to                 31.03.2021 in Finance Act 2020).

    ·     Stamp Duty Value of residential house should not exceed Rs.45 lakhs.

    ·     Assessee shall not own any other house property on the date of sanction of loan.

    ·     Deduction is equal to interest payable or Rs. 1,50,000 whichever less.

    ·     Interest claimed under this provision cannot be claimed again u/s. 24.

  

Section 24(b)

Section 80EE

Section 80EEA

 

Deduction of Rs. 2 lakhs for self occupied property and entire interest for let-out property.

 


Additional deduction of Rs. 50,000 (after exhausting the limit under Section 24(b)) for first-time home buyers, for loans sanctioned by financial institutions between April 1, 2016 and March 31, 2017.

 

Additional deduction  Rs.1.5 lakhs (after exhausting the limit under Section 24(b)) for first- time home buyers, for loans taken for affordable homes up to March 31, 2021. 

Section 80EEA cannot be
claimed with Section 80EE.

 

  

    CA. MOHAMED ASHARAF, FCA, DISA (ICA)

    +919447746535

    www.numerzone.com

    To view similar articles, please visit: www.ashraffca.com

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