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Query about Section 80EE

13 December 2022

Section 80EE is applicable only for loan which sanctioned between the financial year 2016-2017.

Here what is logic of year 2016-17, how long will this year be like this. Will it be changed or not because we are going to year 2023 ?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 13 December 2022

It was additional benefit given in the finance act, for particular year.

The same was extended in finance act, 2019, vide sec. 80EEA... as follows...

80EEA. (1) In computing the total income of an assessee, being an individual not eligible to claim deduction under sec. 80EE, 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 and fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2020 and subsequent assessment years.

(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, 2019 and ending on the 31st day of March, 2022

(ii) the stamp duty value of residential house property does not exceed forty-five lakh rupees;

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

(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year.

(5) For the purposes of this section,—

(a) the expression "financial institution" shall have the meaning assigned to it in clause (a) of sub-section (5) of section 80EE.

(b) the expression "stamp duty value" means value adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property.

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Kuldeep Singh (201 Points)
Replied 14 December 2022

Sir,

I just want to know about section 80EE only.

In my case section 80EEA will not apply because my house neither comes under affordable housing scheme nor have size below 90 sq mtr. My lonable house size is 240 sq mtr.

is section 80EE applicable for loan which sanctioned during FY 2021-22 ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 14 December 2022

Sec. 80EE is not applicable in that case.

Kuldeep Singh (201 Points)
Replied 14 December 2022

I know, but i am confused with logic of FY 2016-2017 linked with section 80EE ? is there any specific reason behind this ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 14 December 2022

As I said earlier. it was additional deduction offered in particular year, and the same was repeated to year 2019 to 2022, u/s. 80EEA.

You have to determined based on your loan sanctioned in 2021-22, whether you can get this additional benefit offered u/s. 80EEA.

If not, forget both of them and concentrate only on deduction available u/s. 24(b) of the act.

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Kuldeep Singh (201 Points)
Replied 14 December 2022

Originally posted by : Dhirajlal Rambhia
	Sec. 80EE is not applicable in that case.

why ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 14 December 2022

Condition not satisfied....

(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, 2016 and ending on the 31st day of March, 2017;

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Jaspreet Singh (2 Points)
Replied 11 June 2023

I had purchased a land in 2011 (no construction yet) followed by a flat in 2017 (where I currently reside). Will my flat purchased in 2017 be eligible to be considered for claiming benefit under 80EE provided other criteria are met?