80ee

80EE is a freshly introduced deduction in respect of interest of housing loan. It can be claimed in addition to the deduction 24(b) under the head House Property. Here are the aspects appertaining to this deduction:

Who can claim it and what are the conditions attached?

1. A person who is acquiring an house for the first time during the FT 2013-14.

2. The principal amout of loan shouldn't exceed 25 lakhs

3. The cost of the house shouldn't exceed 40 lakhs.

4. The person or the spouse or his/her minor child should not be owning a residential house in the city in which the person is residing.

5. The person should not be owning any residential house property anywhere in India claimed as self occupied under the head House Property.

How much is the deduction?

1. The total deduction granted in respect to the interest on housing loan is 1 lakh. The total amount can be claimed only for the FY's 2013-14, 2014-15. 

You can claim the entire 1 lakh (out of 1.7 lakh) in AY 2014-15. And you will get nothing in AY 2015-16. As I said, the entire deduction during the two years cannot exceed 1 lakh. How you distribute the amount between the two years is up to you.