Arun Jaitley while declaring the Budget 2016 re-launched Section 80EE which presents for supplementary deduction of Rs. 50,000 for interest on home loan. This consideration would be covering and above the tax reduction of Rs. 2,00,000 below Section 24 and Rs. 1,50,000 below Section 80C.
| Particulars | Quantum of Deduction (Rs.) | |
| Self-Occupied Property | Non-Self Occupied Property | |
| Section 24 | 2,00,000 | No Limit |
| Section 80C | 1,50,000 | 1,50,000 |
| Section 80EE | 50,000 | 50,000 |
A taxpayer can declare deduction below Section 80EE at the time of registering tax repayments. To discover out how much one can declare as a deduction, here is what requires to be performed:
The characteristics of Section 80EE are as beneath:
A discount can be declared for interest on home loan below Section 24 of the Income Tax Act, 1961. The deadline under this segment is Rs. 2,00,000. This discount can only be demanded if the landlord or his or her family members live in the house property. The undivided interest shall be dismissed off as a reduction in case the home is on rent.
If an individual can satisfy the requirements of both the segments that are Section 80EE and Section 24, the individual can take benefits below the two. To do so, the person will first need to deplete the limit under Section 24 and then declare the additional compensation under section 80EE. Therefore, the reduction under Section 80EE is an enhancement to the boundary of Rs. 2,00,000, as below Section 24.
Yes, it is best if all co-borrowers take insurance while taking home loan as in the case of any untoward incident the other co- borrowers will get burdened with paying their share of the EMI too. A loan cover will take care of their EMIs. You can take insurance while completing the documentation formalities of your loan before disbursement. There are different kinds of loan insurance covers. While some safeguard your family or other co-borrowers from paying the outstanding loan amount, others safeguard you against damages to property or burglary. Based on your preferences you can choose an insurance policy.
In this case, since the co- borrower is not a co-owner of property, he cannot claim any tax exemption. The only solution to this is if your wife executes a sale deed or gift deed in your favour to include you as a co- owner in the property. To do this, she will need to take approval from the bank. Since you are a co-borrower, the bank should hopeful have no objections.
You can rent your second home to other parties for up to two weeks (14 nights) within a year without having to report the resulting income to the IRS. The house is still considered a personal residence, and you can deduct mortgage interest and property taxes under the standard second-home rules. For any further assistance, you can contact our expert e-CA’s.
For under construction property before possession. According to Section 24 of the Income Tax Act, you can claim a deduction against the interest amount that you have paid on your residential property during the pre-construction period. Total allowable deduction stands capped at Rs. 2 lakh per year for self-occupied house.
Yes, you can avail of tax benefit on the second house by claiming it as self-occupied. If you own two houses, you can claim only one as self-occupied, while the other will be considered as let-out property. However, you will be allowed to deduct the interest on a home loan from the notional rent. To save tax, try investing in your spouse's name if he/she does not owns other residential property.
The amount that can be claimed under section 80EE is Rs. 50000/- for A.Y. 2019-20 onwards
Ans: Section 80EE allows income tax benefits on the interest portion of the residential house property loan availed from any financial institution. You can claim a deduction of up to Rs. 50,000 per financial year as per this section. You can continue to claim this deduction until you have fully repaid the loan.
Ans: Documents you need to provide to support your Housing Benefit claim :
Ans: Yes, You can claim a tax benefit under both section 24 and section 80EE in a single year. Tax deduction under Section 80EE of the Income Tax Act 1961, can be claimed by first-time home buyers for the amount they pay as interest on home loan. The maximum deduction that can be claimed under this section is Rs. 50,000 during a financial year. The amount can be claimed over and beyond the deduction of Section 24 which is Rs. 2,00,000.
Ans: As per section 80EE of the Income Tax Act, income tax deduction for interest on home loan can be claimed only in respect of home loan taken for acquisition of residential house property from any financial institution. Hence, section 80EE is not applicable in the construction of a house.
Ans: As per section 80EE , there is no such condition that if an assessee didn't claim deduction of interest on home loan in FY 2016-17, then he/she can't claim it in the subsequent years. Hence if the assessee fulfills all the conditions i.e. :
Ans. To avail deduction under Section 80EE , the house property purchased should not be more than INR 50 lakhs and loan is taken only for INR 35 lakhs or less and it is approved by FIs and on that no other house is under your name.
Ans. All those taxpayers are eligible for Section 80EE who does not own any other house except the purchased property which should not be of value more than INR 50 lakhs and loan amount is not more than INR 35 lakhs
Ans. To know the solution for this, you need to have a look on above FAQ
This deduction is only available to individuals who does not own any other house property as on date and threshold limit for this deduction INR 2 lakh
Section 80EE is only available to individuals, howvern Section 24 applies to HUF also.Section 80EE is only for those who are first time home buyers but section 24 is applicable for all house properties.
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