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