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80ee benefit

mayuri (Tax Consultant) (249 Points)

28 June 2018

Hi,

One of my Client has Purchased House on May 2017, in some of Articles i saw the house purchased in between 1st April 2016 and 31st March 2017 can claim 80EE.

Is it right. Is he not elegible to claim?

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6 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14805 Points)
Replied 28 June 2018

No not for purchase ,but loan has been sanctioned for purchase of residential property by the financial institution during the period begining form 1/4/2016 to 31/3/2017 as per section 80EE (3) (1) of the Income tax act 1961.

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mayuri (Tax Consultant) (249 Points)
Replied 28 June 2018

Thanks for your reply. But his loan is approved in April 2017 and registration is done May 2017.

Is he Eligible?

1 Like

prasad Nilugal ( GST Practitioner & Accounts ) (14805 Points)
Replied 28 June 2018

1)Loan sanction date is up to 31/3/2017

2) Loan dose not excceds 25 lacs

3) value of property dose not excceds 50 lacs

4) Dose not own any residential property on the date of sanction of loan

Above are the conditions under section 80EE of the income tax 1961 for deductions

mayuri (Tax Consultant) (249 Points)
Replied 28 June 2018

Thank you very much..

Rammi_RP Rawat (Accountant ) (386 Points)
Replied 28 June 2018

Conditions to be Met for Claiming Deduction 80EE

This is the 1st house you have purchased
Value of this house is Rs 50 lakhs or less
Loan taken for this house is Rs 35 lakhs or less
Loan has been sanctioned by a Financial Institution or a Housing Finance Company
Loan has been sanctioned between 01.04.2016 to 31.03.2017
As on the date of sanction of loan no other house is owned by you

Section 80EE was effective from the financial year 2013-14. It was available for only 2 years, FY 2013-14 and FY 2014-15 .The deduction allowed earlier was limited to a maximum of Rs 1 lakh in total and was available for only 2 financial years. However, this section has been reintroduced effective FY 2016-17 (assessment year 2017-18).Now the deduction is allowed up to Rs 50,000 per year starting from FY 2016-17 and subsequent years, until the loan is repaid.