Union budget 2013-14

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Prashant Singh (Querist)
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18 March 2014 I hv purchased a property in 2011 n taken a loan of Rs 24.5 lakhs for the same . My question is how much deduction for interest is allowed to me 1.5 lakhs or 2.5 lakhs because According to Union Budget 2013-14 , first time buyers of homes will get an additional deduction of Rs 1 lakh for home loans up to Rs 25 lakhs which will be over &above current Rs 1.5 lakhs deduction allowed for self occupied dwellings Plz clear my doubt Regards Prashant Singh

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 March 2014 1. Deduction u/s 80EE is available only if the loan has been sanctioned during 1/4/2013 to 31/3/2013.

Loans sanctioned BEFORE or AFTER the above period are NOT eligible for deduction u/s 80EE

2. In your case the loan was taken BEFORE 1/4/2013 and accordingly you are NOT eligible for deduction u/s 80EE.