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Sec 80ee interest on housing loan

nilesh (PROPRIETOR) (208 Points)

21 January 2014

Please confirm if deduction under Section 80 EE can be claimed over & above deduction under sec 24 in house property ( Rs 150000/-)

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Mihir (Wealth Manager) (5293 Points)
Replied 21 January 2014

Yes, deduction u/s 80EE can avail over and above deduction u/s 24, provided the conditions given in the section 80EE are fulfilled.

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manoj (student) (5205 Points)
Replied 21 January 2014

YES DEFINATILY U/S 80EE CAN BE CLAIMED ABOVE SECTION 24 . BUT CONDITION OF SECTION 80EE SHOULD BE FOLLOWED

80EE Tax Rebate

First time individual homebuyers can get tax deduction on interest of home loan, under newly inserted section 80EE of the Income Tax Act, applicable for assessment year 2014-15. This is in addition to tax rebate on interest payment of home loan, under section 24.

Eligibility for 80EE rebate

This rebate on home loan interest is applicable only for home loans satisfying the following conditions:

i. Loan is sanctioned by a financial institution or housing finance company between 1st April 2013 and 31st March 2014.

ii. Loan amount is Rs. 25 lakhs or less and cost of residential house is Rs. 40 lakhs or less

This should be the only house owned by the taxpayer at the time of sanction.

Maximum deduction limit under 80EE

Up to Rs. 1 lakh can be claimed towards interest payable on home loan in the financial year 2013-14. If interest payable in this year is less than Rs. 1 lakh then the balance can be claimed in the following year.

For instance if interest payable in FY 2013-14 is Rs. 75,000 then tax rebate on remaining Rs. 25,000 can be claimed in FY 2014-15.

The amount claimed under 80EE cannot be claimed for tax rebate under any other sections in any year.

How to get 80EE tax benefit

You can either produce certificate from your lender to the HR and get deduction on salary TDS or you can deduct the amount from total income while filing income tax return.

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