Deductions u/s 80EE
To promote homeownership the government allowed a tax benefit for First Time Home Buyers u/s 80EE. The deduction amount allowed is a maximum of INR 50,000.
The following conditions must be fulfilled to claim this deduction u/s 80EE:
- The Home Loan amount does not exceed INR 35 Lakhs
- The value of House Property does not exceed INR 50 Lakhs.
- The assessee does not own any other residential House Property on the date of sanction of the loan.
- The loan must have been sanctioned between 1st April 2016 to 31st March 2017
Deductions u/s 80EEA
The deduction u/s 80EEA is only available to individuals. Additionally, it is important to meet the criteria listed below in order to claim deduction under this section:
- The stamp duty value of residential houses shall be up to INR 45 lakh.
- Only individual taxpayers can claim this deduction and not HUFs.
- The loan is taken from a financial institution.
- The loan has been sanctioned between 01-04-2019 to 31-03-2020.
- Assessee is not claiming any deduction under section 80EE.
- The assessee owns no residential house property on the date of sanction of loan.
The exemption limit of this deduction isINR 1,50,000.
Steps to add deductions u/s 80EE and 80EEA
- Navigate to Tax Breaks
- Click on the Other Deductions dropdown
- Click on the 80EE/EEA card
- Enter the eligible amount of deduction in the input based on the explained factors
Note: One of the inputs will be greyed out since only one of 80EE/ 80EEA deductions can be claimed