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Deduction u/s 80ee

adya shakti (article) (67 Points)

29 January 2014

hi guys

we hav a house on my mom's name. my dad purchased a new flat in ay 2012-13 n availed a home loan for the same in june 13 n he is paying his emi from july 13. can he avail benefit u/s 80EE on interest paid by him?

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CA Gyati Gupta (In Practice) (8427 Points)
Replied 29 January 2014

Yes , deduction can be claimed subject to some conditions.

Having the house in the name of your mother will not be an issue.

The main point is home loan should be either in the name of your father or mother or if it is taken in joint names .

Deduction would be allowed to the extent of rs. 1,00,000, to your father, and to both indiviadually in case the loan is taken in joint names.

but deduction is allowed to certain conditions:

1. Loan sanctioned b/w 1.4.2013 to 31.3.2014

2. Amount of loan sanction not exceed rs. 25,00,000.

3. Value of house prop should not exceed rs. 40,00,000.

4. The assessee does not own any house prop on the date of sanction.

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adya shakti (article) (67 Points)
Replied 30 January 2014

thanx gaytri

but can he take deduction u/s 24(since it is not self occupied house he can take deduction of whole interest) & u/s 80EE simultaneously?

CA Gyati Gupta (In Practice) (8427 Points)
Replied 30 January 2014

No its better if u claim deduction under one section only.I dont think govt will allow this! and u/s 24, if the house prop is nt self occupied, den there is no limit on interst deduction and the taxpayer can take tax deduction of the whole intt amt. but it is important to note that in case a prop has not been self occupied by the owner by reason of the fact owing to his employmnt, business or profession carried on at any other place, he has to reside at that other place not belonging to him, then the amt of tax deduction allowed u/s 24 shall be rs. 1,50,000/- only.

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