Section 80ee
This query is : Resolved
09 June 2015
one of my client had filed his return for ay 14-15.He claim home loan interest of 28000 in section 24 & put section 80ee Nil but actually he satisfies all the conditions eligible for 80ee.Now does he claim this in Ay 15-16 & also with section 24(120000 interest)
09 June 2015
Return filed within due date can be revised any time before completion of assessment subject to maximum by the expiry of one year from the end of the relevant assessment year. For Financial year 2013-14 (AY 2014-15),if return is filed within due date then it can be revised by 31.03.2016 provided assessment is not completed.
Section 80EE provided deduction on the Home Loan Interest paid by you and is valid for financial years 2013-14 & 2014-15 (Assessment year 2014-15 and 2015-16) only.
Please note the deduction is only towards the INTEREST on your home loan.
Who can avail this Deduction?
The deduction under this section is available only to Individuals - if you are an HUF, AOP, Company or any other kind of tax payer you cannot claim the benefit under this section. The total deduction allowed under this section is Rs 1,00,000.
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 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 U/s 80EE apart from deduction U/s 24.
Return filed within due date can be revised any time before completion of assessment subject to maximum by the expiry of one year from the end of the relevant assessment year. For Financial year 2013-14 (AY 2014-15),if return is filed within due date then it can be revised by 31.03.2016 provided assessment is not completed.
Section 80EE provided deduction on the Home Loan Interest paid by you and is valid for financial years 2013-14 & 2014-15 (Assessment year 2014-15 and 2015-16) only.
Please note the deduction is only towards the INTEREST on your home loan.
Who can avail this Deduction?
The deduction under this section is available only to Individuals - if you are an HUF, AOP, Company or any other kind of tax payer you cannot claim the benefit under this section. The total deduction allowed under this section is Rs 1,00,000.
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 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 U/s 80EE apart from deduction U/s 24.
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