New Deductions for Interest on Electric Vehicle & Affordable Housing Loans in FY 2019-20

On the electric vehicles, the government has undertaken the two new deductions of affordable housing loan and deduction The tax payers can claim income tax benefits on home loan by claiming certain deductions. Know the easy ways to takeaway the benefits as per the Budget to take interest in the loans sanctioned to the electric vehicles to the taxpayers who have earned in FY 2019-20.

Firstly, under section 80EEA of the income tax, the deduction for the interest can be claimed on the affordable housing loans.

In the context of “housing for all,” the government has extended the deduction in interest permitted for low-cost housing loans which are taken during the period between 1 April 2019 and 31 March 2020. As per the new section, 80EEA Get to know tax benefit on home loan interest for the F.Y. 2019-20 (A.Y. 2020-21). Also, we have included tax benefits on principal repaid, interest Paid. Read more has inserted to permit the interest deduction from the assessment year 2020-21.

The pre-plan under section 80EE permitted a deduction of Rs 50000 for the interest paid by the buyers for the first time for the loans approved from the financial organisation between 1 April 2016 to 31 March 2017. With an eye for advantage in future and succeed for the real estate sector, the government has prolonged the advantages for the FY 2019-20. This can be availed by you until you repaid the housing loan.

If the family lives in the house they can avail a deduction for the interest payment of Rs 2 lakh on their home loan under section 24. The deduction of Rs 2lakh will be imposed if no one resides in the house. The home will be entitled as a deduction if you have given the property on rent. The taxpayer will claim on the advantage If he is satisfied with the conditions under section Section 24 and Section 80EEA of the Income Tax Act Get to know complete guide of TDS provisions under income tax act 1961 at here. Also, we include several topics as TDS returns, TDS due dates. First, clear the liabilities limit under Section 24, which is Rs.2 lakh. Under section 80EEA the assessee will have to claim the advantages. Thus this deduction is an addition to Rs 2 lakh limit permitted beneath section 24.

Secondly, under Section 80EEB as introduced by the Finance Act, 2019, the deduction for the interest on the electric vehicle loan. The person who has taken a loan for buying an electric vehicle from any financial services is liable to claim the deduction for the interest in the electric vehicle. The advantage of deduction under section 80EEB will be available from the assessment year 2020-21 and following assessment years until the repayment of the loans. During the period between April 1, 2019, till March 31, 2023, the loans must be sanctioned as one of the important conditions thus to claim for the advantage of the deduction.