Income Tax Benefit on Home Loan Interest under Section 80EE Of Income Tax Act. For the A.Y. 2014-15 and A.Y. 2015-16

Eligible : Benefit of this section can avail by only Individual assessee. 

Condition : Individual can claim benefit under this section only when all the following conditions are satisfied, these are-

  1. Purchaser should be first time buyer.
  2. Value of the house should not more than 40 lakh.
  3. Loan amount of buy a house should not be more than 25 lakh.
  4. The assessee does not own any residential house property on the date of sanction of the loan
  5. Loan for this purpose taken by individual should be from the Financial Institution or Housing Finance Company.

For this purpose, loan should be sanctioned between 01.04.13 to 31.03.14.

U/s 80EE (4)   - Provides that where a deduction under this section is allowed for any interest payable on loan only when deduction shall not be allowed  in respect of such interest under any other provisions of the Act for the same or any other assessment year.

Quantum of Deduction : Assessee can take deduction u/s 80EE on interest payable on home loan upto 1 Lakh in A.Y.2014-15. It can claim deduction in two assessments year. Means if whole amount of interest payable upto 1 lakh is not claim as deduction in A.Y.2014-15 then remaining balance amount upto 1 lakh can claim in A.Y.2015-16.Total deduction under this section shall not be more than 1 lakh.

Example- If Assessee has taken a loan for the purpose of residential house property & interest payable on loan Rs. 70000/- for the A.Y.2014-15.In this case assessee can claim deduction 70000/- in A.Y.2014-15 and other remaining balance i.e. Rs. 30,000/- ,can claim in A.Y.2015-16