011-45626514
Contact us
G-2/7 Sector 11 Rohini (Near Titiksha Public School) Delhi-85
Section 80EE
Deduction for Interest on Home Loan
Section 80EE provides additional deduction in respect of interest on loan taken by an individual for acquisition of residential house property from any financial institution.
The conditions to be satisfied for availing this deduction are as follows -
- The assessee should not own any residential house on the date of sanction of loan
- Value of house ≤ 50 lakhs
- Loan should be sanctioned during the P.Y.2016-17
- Loan sanctioned ≤ 35 lakhs
Period of benefit
The benefit of deduction under this section would be available till the repayment of loan continues.
Quantum of deduction
The maximum deduction allowable is 50,000. The deduction of upto 50,000 under section 80EE is over and above the deduction of upto 2,00,000 available under section 24 for interest paid in respect of loan borrowed for acquisition of a self-occupied property
Meaning of certain terms
| Term | Meaning | |
| a. |
Financial institution |
|
| b. |
Housing finance company | A public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes. |
ILLUSTRATION
Mr. Shyam purchased a residential house property for self-occupation at a cost of 48 lakh on 1.4.2017, in respect of which he took a housing loan of 35 lakh from Bank of India @11% p.a. on the same date. The loan was sanctioned on 10th March, 2017. Compute the eligible deduction in respect of interest on housing loan for A.Y.2022-23 under the provisions of the Income-tax Act, 1961, assuming that the entire loan was outstanding as on 31.3.2022 and he does not own any other house property.
SOLUTION
| Particulars | Amount |
| Interest deduction for A.Y.2022-23 (i) Deduction allowable while computing income under the head “Income from house property” Deduction under section 24(b) ` 3,85,000 [` 35,00,000 × 11%] Restricted to (ii) Deduction under Chapter VI-A from Gross Total Income Deduction under section 80EE `1,85,000 (` 3,85,000 – ` 2,00,000) Restricted to |
|
Disclaimer: Although all provisions, notifications and updates, are analyzed in-depth by our team before writing to the public. Any change in detail or information other than fact must be considered a human error. The Guide, Articles, Blogs, FAQ and videos is to provide updated information. Tax matters are always subject to frequent changes hence advisory is only for the benefit of the general public. Hence neither TaxSmooth nor any of its Team members is liable for any consequence that arises on the basis of these write-ups.
Related Topics
INDEX