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Deduction under 80C and 80 EE

17 August 2018

If an assess purchase a residential house property of less than Rs. 50 lakhs approx and take a housing loan of Rs 30 lakhs for this purpose. How much deduction under 80C And 80EE will be allowed and for how many years?

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6 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 17 August 2018

Under 80C deduction upto 1.5lac of Principal amount repayment of loan will be available until loan is repaid 100%

Under 80EE interest deduction is available of not > 50k only if loan taken in 2016-17 and assessee should not own another HP and rest is as said by you.

You wont be able to claim 24(b) then

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Kamal Verma (Financial advisor) (588 Points)
Replied 17 August 2018

Deduction u/s 80C for principal repayment of home loan up to Rs. 1,50,000 and interest payment upto Rs. 2,00,000 u/s 24 is allowable and

Deduction of Section 80EE would be applicable only in the following cases:-

This deduction would be allowed only if the value of the property purchased is less than Rs. 50 Lakhs and the value of loan taken is less than Rs. 35 Lakhs.
The loan should be sanctioned between 1st April 2016 and 31st March 2017.
The benefit of this deduction would be available till the time the repayment of the loan continues.
This Deduction would be available from Financial Year 2016-17 onwards

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 17 August 2018

Kamal its only for FY 2017-18 and not onwards 2016-17

Debiprasad Jana (295 Points)
Replied 17 August 2018

kamal verma is absolutely right.
Deduction would be available from the financial year 2016 onwards till the full payment of loan.

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Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 17 August 2018

Yes, but only of loan taken in 2016-17 and not thereafter

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rama krishnan (12244 Points)
Replied 18 August 2018

at the same time interest on borrowed capital can be claimed under both sections 24(b) and 80ee but not on same amount. i.e. if the assessee pays 2.5 lacs as interest, then he can claim 2 lacs under 24(b) and 80ee

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