With the high expectations zooming yesterday and quickie highlights by news channel it was just reported that

' HOME LOAN INTEREST DEDUCTION INCREASED TO 2.5 LAKH P.A'

 but it is not so straight and till now it is not clear to many whether the amendmend is so simple............!!!!

No..No...No...  all i can say is hon'ble FM has its own way to befool public..and worst is that he succeeded..

Mast bewkoof banaya..!!!!!

HOW..???

The deduction will be applicable for loans taken in fiscal 2013-14.

what about those who has taken loan just last year..??

The limit is for loan not exceeding 25 lakh and vaue of property should not exceed 40 lakh.

What is average rate per home/flat now a days and from where the balance amount ,a salaried employee will arrange..??

If the limit is not exhausted, the balance may be claimed in AY 2015-16

This deduction is for one time..??? what about next years.??? a loan normally runs 20-25 years..??

Extract of bill:

After section 80E of the Income-tax Act, the following section shall be inserted with effect from

the 1st day of April, 2014, namely:—

‘80EE. (1) In computing the total income of an assessee, being an individual, there shall be

deducted, in accordance with and subject to the provisions of this section, interest payable on loan

taken by him from any financial institution for the purpose of acquisition of a residential house

property.

(2) The deduction under sub-section (1) shall not exceed one lakh rupees and shall be allowed in

computing the total income of the individual for the assessment year beginning on the 1st day of

April, 2014 and in a case where the interest payable for the previous year relevant to the said

assessment year is less than one lakh rupees, the balance amount shall be allowed in the assessment

year beginning on the 1st day of April, 2015.

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.

HAHAHAHAHA..!!!! :)