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Deduction u/s 80eee

sai kiran (Student CA Final ) (52 Points)

07 January 2014

Mr.A had brought a home in past 15 Years by took housing loan.Now the loan amount was repaid totaly.In the year of 2012 he brought one more house by took loan from bank.Now he get the deduction of Rs 1,00,000/- U/s 80EEE or not?

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Deepak Gupta (CA Student) (15922 Points)
Replied 07 January 2014

Originally posted by : sai kiran
	Mr.A had brought a home in past 15 Years by took housing loan.Now the loan amount was repaid totaly.In the year of 2012 he brought one more house by took loan from bank.Now he get the deduction of Rs 1,00,000/- U/s 80EEE or not?

First of all correct section is 80EE and not 80EEE.
Mr. A is not fulfilling conditions (i) and (iv) of sub-section 3 of section 80EE. Hence not eligible.

Additional deduction of Rs. 1 lakh for interest is available u/s 80EE (w.e.f AY 2014-15).
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Refer the conditions given u/s 80EE(3). I am pasting the same here for your perusal.
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(3) The deduction under sub-section (1) shall be subject to the following conditions, namely:—

(i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2013 and ending on the 31st day of March, 2014;

(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;

(iii) the value of the residential house property does not exceed forty lakh rupees;

(iv) the assessee does not own any residential house property on the date of sanction of the loan.

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debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 18 May 2020

Section 80EE allows Income Tax benefits on the interest portion of the house property loan availed from any financial institution. The deduction allowed under this section is for the interest paid on a home loan for up to a maximum of Rs 50,000 per financial year. You can continue to claim this deduction until you have fully repaid the loan.

Features of the 80EE Deduction

The following are the feature of 80EE Deduction under Income Tax

The deduction under this section is available only to individuals. This means, if you are a HUF, AOP, a company or any other kind of taxpayer, you cannot claim any benefit under this section.
This deduction is over and above the Rs 2 lakh limit under section 24 of the income tax act. Read more about deduction of Rs 2 lakh on interest on home loan here.

To claim this deduction, you should not own any other house property on the date of the sanction of a loan from a financial institution only.

Eligibility for Claiming Section 80EE Deductions

To become eligible for claiming 80EE deductions, a taxpayer has to make sure of the following:

Only individual taxpayers can claim deduction under Section 80EE on properties purchased either singly or jointly. If an individual has bought a property jointly with his or her spouse and they are both paying the instalments of the loan, then the two can individually claim this deduction.
E-tax benefits are not applicable for Hindu Unified Families (HUF), Association of Persons (AOP), companies, trusts, etc.
Tax benefits under Section 80EE can only be claimed by first-time home buyers. In order to claim this deduction, the individual must have taken the loan from a financial institution for buying his/her first residential house property.
Section 80EE is applicable on a per person basis rather than a per property basis.
To claim this benefit, it is not necessary for the taxpayer to reside in the property for which he or she is claiming this deduction. Borrowers living in rented homes can also claim this deduction.