Tax benefits on loan for housing property To fulfil objective 'Housing for all' of the Government and to enable every person to buy a Residential hous
Tax benefits on loan for housing property
To fulfil objective 'Housing for all' of the Government and to enable every person to buy a Residential house at low cost, a new section 80EEA is inserted in the Act. This section provides an extra deduction of Rs one lakh fifty thousand (1,50,000/-) apart from Section 80C but some conditions are attached to this section which is as follows :
1. The person taking deduction u/s 80EEA does not have any residential house property as on the date of sanction of loan.
2. house property stamp duty value is not more than Rs forty-five lakh Rupees (45,00,0000/-)
3. loan sanction should be during the period of 1st April 2019 to 31st March 2020.
This Section will be effective from 1st April 2020.
So for as in the Income Tax Act you have three Sections in which you can claim Home loan Interest and Principal deduction.
1. U/s 24: Under the Head Income from house property Section 24 interest paid on housing loan for purchase or construction or reconstruction deduction of up to Rs Two Lakhs (Rs 2,00,000) can be taken if the property is self-occupied. If the property is not self-occupied then there is no upper limit so you can claim whole interest paid as deduction u/s 24.
2. U/s 80C: Section 80C provides a deduction for Principal of Housing Loan. Under section 80C you can claim Rs One lakh fifty thousand (Rs 1,50,0000) as a deduction. Deduction under this section will be available only when the loan is taken for purchase or construction of new residential house property.
3. 80EE: In this section deduction of Rs One lakh fifty thousand ( Rs 1,50,000) can be taken for house property.
1. The person taking deduction u/s 80EEA does not have any residential house property as on the date of sanction of loan.
2. house property stamp duty value is not more than Rs forty-five lakh Rupees (45,00,0000/-)
3. loan sanction should be during the period of 1st April 2019 to 31st March 2020.
This Section will be effective from 1st April 2020.
So for as in the Income Tax Act you have three Sections in which you can claim Home loan Interest and Principal deduction.
1. U/s 24: Under the Head Income from house property Section 24 interest paid on housing loan for purchase or construction or reconstruction deduction of up to Rs Two Lakhs (Rs 2,00,000) can be taken if the property is self-occupied. If the property is not self-occupied then there is no upper limit so you can claim whole interest paid as deduction u/s 24.
2. U/s 80C: Section 80C provides a deduction for Principal of Housing Loan. Under section 80C you can claim Rs One lakh fifty thousand (Rs 1,50,0000) as a deduction. Deduction under this section will be available only when the loan is taken for purchase or construction of new residential house property.
3. 80EE: In this section deduction of Rs One lakh fifty thousand ( Rs 1,50,000) can be taken for house property.
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