To understand the key tax benefits on a home loan, we are bifurcating the repayment techniques into four major elements-tax benefits on principal repaid, tax benefits on interest paid, deduction on pre-construction interest, and section 80EE income tax benefits. The next section will let you know the concept in detail.
Tax Benefits on Principal Repaid
Under section 80C of the Income Tax Act, the maximum deduction allowed for the repayment of the principal amount of a home loan is Rs. 1.5 lakh. Deduction under section 80C also includes investments done in the PPF Account, Equity Oriented Mutual funds, Tax Saving Fixed Deposits, National Savings Certificate, etc. subject to a maximum of Rs. 1.5 lakhs.
Besides this, there are stamp duty and registration charges that one can claim under the aforementioned section. However, the claim can only take place in the year in which the payment was made.
Nevertheless, there’s a condition under which this repayment of the principal amount of the housing loan is allowed. The deduction is only possible after the house gets entirely completed and there is a completion certificate for the same. The principal amount paid on any under-construction structure/property is not going to be a part of this section.
Tax Benefits on Interest Paid
Under section 24 of the Income Tax Act, one can avail of the deduction on a Home Loan for payment of Interest tax benefits. The self-occupied property allows the deduction with a maximum limit of Rs. 2 lakh if it takes completed within 5 years from the end of the Financial Year, otherwise, the maximum limit is Rs. 30,000.
Interest on housing loans paid for the let-out property is fully allowed in the relevant assessment year in which it is claimed.
From Assessment year 2018-19, the loss from house property head that will be allowed to be set off from other heads of income will be restricted to Rs 2,00,000 in a particular assessment year, and the rest amount shall be carried forward for set-off in subsequent years.
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Read Also: Tips to Save Income Tax in India
Tax Deduction on Pre-construction Interest
You can also claim interest on a housing loan paid before the completion of the construction of the property. It is termed pre-construction interest. It is allowed in 5 equal instalments beginning from the financial year in which the construction is completed. The limit of 2 lacs will also apply for pre-construction interest in the case of self-occupied property. However, it is fully allowed in case we let our property.
Section 80EE Income Tax Benefit
Section 80EE proposes an additional deduction of Rs 50000 in respect of interest on housing loans to first-time house owners who own a house of Rs 50 lakh or less and have taken a home loan amount of less than or equal to Rs 35 lakh. The loan should be sanctioned between April 1, 2016, and March 31, 2017, to claim a deduction under this section. This deduction shall be in addition to the interest allowed under section 24(b) of the Income Tax Act, 1961.
Deductions Claimed by Individuals Under Section 80EEA
As mentioned under the newly inserted section 80EEA of the Income Tax Act, the government has extended the limit of deduction up to Rs. 1,50,000 applicable to the interest paid by any individual on the loan against residential property.
As per the policies, the deduction is available for individual residents only and for the property having a stamp value of less than Rs. 45 Lakhs.
Also, the loan needs to be sanctioned between 1 April 2019 to 31 March 2022, and the individual should not own any other residential property at the date of sanctioning the loan. Lastly, the person should not be eligible for claiming any deduction U/S 80EE.
Joint Home Loan Deduction
In case the home loan is taken jointly, then the loan borrowers are eligible to claim a deduction of up to 2 lakh each for the home loan interest and principal repayment u/s up to INR 1.5 lakh each in the tax return individually. They all must be co-owners of the property and further it helps in the larger tax claim benefits if in the family itself.
| Deductions | Section | Maximum Deduction (INR) | Conditions |
|---|---|---|---|
| Principal | 80c | 1.5 Lakh | No sale of property within 5 years |
| Interest | 24b | 2 Lakh | The loan has to be taken for construction and has to be completed within 5 years |
| Interest | 80EE | 50,000 Thousand | The loan amount must be under 35 lakhs , and the property value under 50 lakhs |
| Stamp Duty | 80C | 1.5 Lakh | Availed only in the year of expense |
| Interest | 80EEA | 1.5 Lakh | The stamp value of the property is under INR 45 lakh. Taxpayers are not eligible to claim a deduction under section 80EE |
However, in the new tax regime, deduction is not allowed under sections 24(b), 80C, 80EE and 80EEA.
I took a home loan in September 2016. The possession certificate was received on 20 Mar 2018. The interest paid by me on this loan was 76000/- in FY 16-17 and 120000 /- in FY 17-18.
I’m filing ITR for FY 16-17 on 29 Mar 18. While filing ITR for FY 16-17 (AY17-18) will I get Rs 76000 as the deduction on taxable income (interest paid in FY 16-17)…Or should 20% of it be included in 120000 for deduction in ITR of FY 17-18?
As possession is transferred in FY 2017-18, so interest for the prior period will be allowed in 5 equal annual instalments from the FY 2017-18.
very informative
I have owned a flat by the home loan of rain 500000. I borrowed money from the nationalised bank of rain 1950000 for purchasing an another flat.
Can I get interested amount exemptions in tax calculation?
You can claim exemption u/s 24b of house property head by claiming the house as a self-occupied for one property and the other property will be treated as deemed let out and then you can claim the interest deduction separately.
Sir,
My home loan, for Rs 20 Lakhs, was disbursed on Nov 2016. The interest paid so far is Rs 1.38 L. I have put this amount under 24b. My property value is less than 50L and this is my first home. Can I claim Rs 50000 under 80EE in addition to this 1.38L?
Thanks and Regards
Venugopal
Hi Saginfotech Team,
Have purchased a flat in May 2015 for Rs. 35 Lacs and I recently come to know about 80EE, so can I start to avail the deduction from this year at least.
Deduction u/s 80 EE is only available if the loan is sanctioned between 01/04/2016 to 31/07/2017 and the amount of loan is up to 50 lacs.
I have sanctioned a home loan in January 2010 on a construction-linked plan. the first disbursement was given in January 2010 itself. From time to time, as per the demand of the builder, the home loan was disbursed in several tranches. The remaining final amount was released in October 2017 and the possession of the house was given in December 2017. Am I eligible for claiming benefits under sec 24 of the IT Act?
The deduction can be claimed in the AY 2018-19 for interest u/s 24 and u/s 80C for the principal amount for payment made after possession of the house. Also, the house must be constructed within 5 years from the date of sanction of loan otherwise the deduction for interest will be restricted to Rs.30000. Interest for the period prior to construction can be claimed in 5 years beginning from the A.Y. in which construction is completed. Prior period principal payment cannot be claimed as a deduction.
Hello Sir, I have taken a home loan in Feb 2018 of 34 Lakhs. The value of the property (residential Independent house) is 58 lakhs. And I am the first time home loan buyer. Can I claim additional 50000/- deduction under 80EE from FY-17-18. But I have paid 48 k as interest. How will be additional 50000 calculations?
Primary conditions for claiming the deduction is that the loan amount should be less than 35 lacs and the value of the property would be less than 50 lacs, as your property value is more than limit, you will not be eligible for deduction u/s 80EE.
VASUDEVAN.D
”
January 30, 2018, at 10:07 am
Sir, I have purchased a plot on Apr 17 and the construction is going on, which will be completed in Jun18.Loan sanctioned is Rs.34.75 Lacs.on 25.05.17.
1. I had one property before and sold the same on 05.05.17, well before the sanction of this loan, by fulfilling conditions like not owning a house at the time of buying new property and also less than 34.75 lacs. Will I able to get a deduction of Rs.50000/- under section 80EE this fy 2017-18: ay:2018-19.
2. As said earlier, l will get possession of this property by June’18 only. But, I have started paying EMI from jul17 onwards, which works out to Rs.1,82,975/-. Can I start my 1/5th of construction interest, i.e., Rs.,36,000/- from this AY 2018-19: FY:2017-18.u/s24.”
3. Since I have not occupied and taken only 1/5th of interest, will I be able to take the benefit of HRA for the FY-2017-18
Request your help in reply, please.
Sir, interest paid on more than one housing loan is allowable as the deduction under income tax of an individual. I have three home loans taken from SBI interest paid on three loans can be claimed as a deduction.
You can claim a deduction for each home loan separately, it will not be clubbed and allowed from only one single house property.
Hello,
I have bought a flat on 22/Jul/2015 from LIC for an amount of INR 39,00,000. During the month of Feb-2017, I have repaid the outstanding housing Loan value and have taken a new Loan from Bajaj Finance for INR 46,00,000 [INR 39,00,000 (New Loan)+ INR7,00,000 (Top Up)]. New Housing loan from Bajaj was sanctioned on 28/Feb/2017 for the same house property. I would like to check if I can claim the exemption under Sec 80C & Sec 24 for Interest and Principal.
The reason for my question is, I see a checkbox “I will not transfer any House Property mentioned above before the expiry of five years from the end of the financial year in which possession of such house property is obtained by me.” Would this statement deter me from claiming an exemption for obtaining the exemption under Sec 80C & Sec 24 for Interest and Principal?
As you have not sold the concerned house property before 5 years, you can claim the deductions.
I have purchased the resale property hence I have certified a copy of the registry, not a possession letter. Can I get the benefit of income tax for home loan interest & principal on behalf of the registry?
Deduction of interest and principal is allowed on ownership basis, so as you have a registry in your name completed, you can claim such deduction.
Sir, I have taken a Home loan from HDFC bank in 2014. The cost of the apartment is 1.24 cr and the sanctioned loan amount was 83 lakhs. still, it is under construction. whether I can avail any tax benefit, for the interest paid or for my principal amount?
You can only claim deduction of interest and principal from construction completion year onwards u/s 24B, 80C and 80EE
I purchased a 2BHK flat in July 2015 and took 27 lakhs loan in July 2015. To get remaining last 5% amount, Builder had sent a mail on Feb 2018 saying please “pay to remain 5% and take your possession”. I paid the remaining amount in March 2017. In July I got the registry papers but the flat was not in the position to be shifted. So I submitted rent receipts to my office. Now I will be shifting in my flat on 23rd Jan 2018. So my question is –
1. Can I take tax rebate on Principle (80C) as well as Interest (24B) in this financial year?
2. At the time of the loan, my wife was not employed so I took the loan in my name and EMI is also deducting from my salary account. In the property, I and my wife both are the applicant.
Hence my questions are –
a). Can my wife also can avail tax rebate as I will avail for this financial year?
b). We paid stamp duty also but that also deducted from my account. If she transfers same amount to my account, Can she be able to mention that also in 80C?
Please help me to find the answers of these questions.
Many Thanks in Advance.
1) As legally possession of flat has been transferred in July 2017, so from F.Y. 2017-18 you can claim the deduction of interest payment and principal payment.
2) a) As the loan is in your name, so your wife cannot claim the deduction, and also you can avail the deduction up to the income related to your share in-house property.
b) As your wife also a co-owner in property and she has also paid the expenses, she can claim a deduction for such expenses.
2)a. I just checked the lease deeds papers and did not found the share in %. Everywhere I and my wife signed together. My wife is the first applicant and I am co-applicant. In this case what will be my share in-house property and how much tax exemption can I take in 80C and 24b?
The loan is in both my and wife name (signed the papers together) but EMI is deducting from my account only. Still, she will not be able to take tax benefits?
Many thanks for your amazing and quick help.
If both of you are co-owners then % of share have to be there, so you have to first check that are you a co-owner or a nominee.
I have taken a loan of 30 lakhs from sbi,flat price under 50lakhs, no previous home or flat loan sanctioned 19/04/2017. Am I eligible under 80EE IN FY 2018/2019 ?
The condition to claim deduction u/s 80EE is that loan must be sanctioned between 01/04/2016 to 31/03/2017. No deduction can be claimed in your case.
Hi
I’ve taken ready to move property in Feb’17 amounting 69,20,00 (gross) and my loan was approved in Aug’17 of INR 46,00,000. I am aware that property value should be less or equal to 50 lakhs and loan amount should be less than or equal to 35 lakhs. Now my question is; is there any way I can claim any amount/savings/rebate in FY17-18 or FY18-19?
Thanks
For claiming deduction u/s 80EE, the loan should be sanctioned between 01/04/2016 to 31/03/2017. As your loan is sanctioned on Aug 2017 so you can’t claim deduction u/s 80EE. But you can claim interest deduction u/s 24b by showing it under house property head.
Hello,
I have purchased a2BHK under construction house in 2013 and loan too got sanctioned for 30L in 2013. Later in 2017, I have upgraded 2BHK to 3BHK flat under the same property. During the upgrade, the bank has opened a new home loan account in 2016 and transferred the balance of 24k from old loan account to new.
I have received the possession in Jan2018 and hence I will claim the tax benefit starting this year. For F.Y. 2017-18, interest paid is 1.93 Lakhs and Pre-construction interest (old home loan account) is 3Lakhs
My question is:
1. Can I claim the pre-construction interest benefit knowing that those interest bear to old account no?
2. Can I also claim the additional benefit of 50K because my property value is less than 50L and loan sanctioned is less than 30L?
1. Yes, you can claim the deduction of pre-construction interest in 5 instalments from the A.Y. in which construction completed.
2. Deduction of Rs. 50000/- under Section 80EE is applicable on loans taken for purchase of residential property, as you have constructed your 2BHK flat to 3BHK flat, you are not eligible for exemption
I’ve taken an apartment in a different city and its vacant for the Financial Year 2017-2018. Should I file it under Income from House Property even though it was vacant?
If there is no income arises during the F.Y. and you not have taken any loan on such property, you not need to disclose the same in return for F.Y. 2017-18.
Hello,
Have taken a loan of Rs. 29 lacs in the year 2013-14 for the purchase of the ready new flat in Mumbai. Paid interest every year Rs. 2.8 lacs, 2.6 lacs, 2.4 lacs, 2.3 lacs till this financial year. As per tax laws, also claimed tax exemption up to a limit of Rs. 1.5 or 2.0 lacs as applicable every year. This year, I have closed the loan and no interest payment made. In this case, can I claim tax exemption of excessively paid interest (on accrual basis) i.e. 2.8 (interest)-1.5(exemption)+2.6-1.5+2.4-2+2.3-2 = 3.1 lacs accrued interest over 5 years. Am I eligible to claim this accrued interest during this financial year?
House property loss can be carried forward to next 7 A.Y. from the A.Y. in which that loss incurred.
Hello Sir,
I applied for the home loan and got pre-approval in Oct-2016 based on salary. But finalizing the flat in February-2017 and loan got disbursed in February-2017 for 25.5 lakhs. After that, i applied home improvement loan for woodwork for 6 lakhs. In last year IT I haven’t submitted any of these things. Can you please suggest what all benefits I can avail with respect to income tax (80C, 80EE, 24b) and PMAJ-MIG2. If I need to show 80EE for last year but my interest amount is only around 29000Rs, I need to show only this amount or is it possible to show for 50k considering this year? Is home improvement loan is eligible to show for IT?
Thanks
Deduction for the interest u/s 24b and principal u/s 80c is allowed only from the year in which construction is completed/possession is taken. deduction of interest for the period prior to the date of construction/possession is allowed in five equal instalments beginning from the year in which construction is completed or possession is taken. but such deduction is not allowed for the principal amount. it will only be allowed from the year in which construction is completed. for claiming deduction under 80EE, specific conditions have to meet. The 80ee deduction is over and above 24b.
This is with reference to the Home Loan on my second flat purchased. Received its possession on 21st November 2017.
Interest on Home Loan paid during Prior Period is as follows:
Financial Year / Interest on Home Loan (Rs.)
FY 2015-16 / Rs 38,546.08
FY 2016-17 / Rs 2,45,162.64
TOTAL – Rs 2,83,708.72
20% OF TOTAL – Rs 56,741.74
Principle and Interest on Home Loan paid during the current financial year in which I got the possession of the second flat is as follows:
Financial Year / Principle on Home Loan (Rs.) / Interest on Home Loan (Rs.)
FY 2017-18 / Rs 1,12,422.81 / Rs 2,33,684.19
If I show this second flat as Let-out House Property, then please advice on:
What should be the Interest amount that I show on Housing Loan?
Is it Rs. 2,33,684.19 (FY 2017-18) + Rs. 56,741.74 (20% of Prior Period) = Rs. 2,90,425.93
Or Is it restricted to Rs 2 lakhs
What should be the Principle amount that I show on Housing Loan?
Is it Rs. 1,12,422.81 (Full FY 2017-18)
Or is it for the period (Dec 2017 – Mar 2018) post possession
Normal rent for a 2 BHK at the complex is Rs. 7,000 to Rs. 7,500. How much out of this amount should I show as notional rent amount per month?
How many months notional rent amount do I need to show?
Is it for the full FY 2017-18
Or is it only for the period (Dec 2017 – Mar 2018) after receiving possession
What is the Property Tax Paid amount that I need to show?
The builder will be giving the money for the property tax of 1 year, which I need to go and pay to the Gram Panchayat. Have not received the money yet.
What is the Repairs amount that I need to show?
Would request you to kindly advise me on the above-mentioned queries.
For F.Y. 2017-18, a deduction for the interest is limited to Rs.2,00,0000 both in case of self-occupied property and let out property. it also includes preconstruction period interest (1/5 of the total amount of interest paid during the pre-construction). so interest deduction will be allowed only up to Rs. 2,00,000 for the F.Y. 2017-18. Also, the deduction for the principal amount is allowed only from the period from which the possession is taken/ construction is completed. so the principal deduction is allowed only for the period after 21st Nov 2017.
Deduction of house tax will be allowed only if paid by the landlord.
Hi Madam,
Is from this year the total interest on the home loan from both self-occupied and let out capped at 2L or it’s separate 2L for self-occupied and 2L for let out.
Thanks,
Shubhojit
From AY 2018-19 the benefit of home loan interest for both self-occupied and let out house will be restricted to 2 lacs only. It is not separate.
Dear Sir,
I owned a flat earlier and sold the same in May’2017. Now, I have bought a land on 15th July-2017 and the construction is going on. It will be completed within June’2018.
What I want to know is whether I can claim the interest of Rs.200000/- under sec.24, and also the first-time buyer since I don’t have any house u/s/80EE, the property sanction loan is 34.5 lacs and the value of the property is less than 50 lacs.
You can claim the deduction of interest amount only when the construction is completed. Interest for the period prior to the date of construction is allowed in five equal instalments from the year in which construction is completed.
Sir, I have purchased a plot on Apr 17 and the construction is going on, which will be completed in Jun18.Loan sanctioned is Rs.34.75 Lacs.on 25.05.17.
1. I had one property before and sold the same on 05.05.17, well before the sanction of this loan, by fulfilling conditions like not owning a house at the time of buying new property and also less than 34.75 lacs. Will I able to get a deduction of Rs.50000/- under section 80EE this fy 2017-18: ay:2018-19.
2. As said earlier, l will get possession of this property by June’18 only. But, I have started paying EMI from jul17 onwards, which works out to Rs.1,82,975/-. Can I start my 1/5th of construction interest, i.e.,Rs.,36,000/- from this AY 2018-19:FY:2017-18.u/s24.
Request your help in reply, please.
1) The loan taken between 01/04/2016 to 31/03/2017 are only eligible for 80EE.
2) As possession will be transferred in F.Y. 2017-18, so deduction u/s 24b will only be eligible from F.Y. 2017-18.
I have taken a personal loan and construct my home can I still claim the deduction as the loan was not house loan because I cant get it because of locality problem.
i have taken personal loan and used such amount for my home can i claim deduction under 80ee
The deduction is not allowed for personal loan taken for construction of residential house property.
I have taken a home loan but I registered the property for my mother’s name only, can I avail tax rebate?
Thanks in advance
As the property is not registered in your name, you cannot avail tax rebate, as the income from such property will be taxed in the hands of your mother.
I purchased resale flat under construction in May 2017. Home loan EMI (Principal + Interest) started from July 2017 as expected possession was in September 2017. Now possession is delayed to July 2018. So I am not able to claim tax benefits for Principal Rs 1.5 lac and Rs. 2 lac this year 2017-18. When I can claim these tax benefits? Do I need to let go 80C benefit this year so that I can claim tax benefits in future against principal paid this year?
You can claim the deduction of the interest and principal in the F.Y. 2018-19 only. Deduction for the interest pertaining to the period prior to date of possession can be claimed as a deduction in five equal installments beginning from the year in which construction is completed or possession is acquired.
If I take a loan on my mother FDR for house construction. Am I eligible?. Tax exemption on interest.
No, since housing loan is not in your name.
I took a loan for construction of the house in own plot. Can I get the 80ee benefit? All other conditions are fulfilled.
If all other conditions are satisfied then you may claim deduction under 80EE.
I took housing loan in January 2013 (FY 2012-13) to buy a flat, the possession of which is due in December 2017 (FY 2017-18). How much interest deduction is applicable in my case in current FY? Whether registry of the flat is the precondition to claim the benefit in current FY. Please help.
No deduction for the interest can be claimed as the housing loan has been taken in the fy 2012-13.
But isn’t it within 5 yrs?
The deduction can be claimed u/s 24 up to Rs. 200000 for the interest amount. No deduction u/s 80EE can be claimed.
Hi, I have one query. Section 80ee is applicable for home value up to 50L. Is home value inclusive of amenities, GST, registration and all or only base price of the property?
Thanks
only interest amount paid on housing loan is allowed as deduction u/s 80EE.
But it says that this deduction is applicable if properly value less than 50L. What do I mean by property value? Complete unit cost including amenities, GST, registration?
It will be inclusive of all the cost.
Hi,
I would like to clarify the “Section 80EE Income Tax Benefit” which is updated in this article.
> However, the same shall not be applicable from FY 2017-18 <- Is this rule came recently?
Because, in the incometaxindia circular, it is mentioned that ".Further, this
benefit of deduction is extended till the repayment of loan continues".
Please see the below paragraph
=============================================
” Reference: http://www.incometaxindia.gov.in/Communications/Circular/Circular03_2017.pdf
…
17.3 In furtherance of the goal of the Government of providing 'Housing For All',
section 80EE of the Income-tax Act has been substituted to incentivise first-home buyers
availing home loans, by providing additional deduction of Rs 50,000 in respect of interest on
loan taken for acquisition of a residential house property from any financial institution. This
incentive has been extended to a house property of a value less than fifty lakhs rupees in
respect of which a loan of an amount not exceeding thirty five lakh rupees has been sanctioned
during the period from the 1st day of April, 2016 to the 31st day of March, 2017.Further, this
benefit of deduction is extended till the repayment of loan continues. This deduction under
section 80EE shall be over and above the deduction of two lakh rupees available under section
24 of the Income tax Act for interest payable on loan taken for self-occupied property
=============================================
In case if the rule is changed for section 80EE, could you please provide the official link where it is announced?
Please help me in clarifying whether this 80EE is applicable only for FY16-17 but not for the consecutive FY.”
Please visit the below link given:
http://www.incometaxindia.gov.in/pages/acts/income-tax-act.aspx
As per section 80EE, the deduction in respect of interest on the loan is taken for residential house property not exceeding Rs. 50,000 will be available for A.Y. beginning on the 1st April 2017 and subsequent assessment years.
Thanks for sharing the link
Regards,
Ananda
Hello team.
I have two home loans running. One is self-occupied and other is let out property. How much tax exemption I should get now. 4 Lakhs (2 Lakhs for each loan) or only 2 Lakhs limit together?
Thanks,
Anjan
For self-occupied, you can claim the deduction of Rs. 200000 and for the let out property actual interest paid can be claimed as the deduction. So you can claim the deduction for both.
Hello, i have taken a home loan of 46.50 lakhs which is rented out property.Interest debited to the account is 1.90 lakhs for the FY 2016-17 whereas my repayment is 1.85 lakhs for the 2016-17. Now, how much I can claim Tax Exemption towards the interest on my housing loan 1.90 lakhs or 1.85 lakhs??
An exemption can be claimed only to the extent of actual repayment of interest which is 1.85 in your case.
Hi, Purchased flat in Sep 2014 an possession took in Jul 2017. Want to know the can i show the pre-construction interest in the Assessment year (2018-19) and how many years can claim.
Pre-construction period starts with the date of borrowing upto the 31st march just before the construction completion year.
Hello sir, I took loan to purchase flat in January’2014 and i got the possession of flat in July’2017. In my case, the maximum tax benefit that i can claim on interest paid on home loan will be Rs. 2 Lakh or it will be limited to Rs 30,000/yr assuming both condition the flat is let-out/ Self occupied. Since i acquired the flat in FY 2017-18, will be the relaxation of construction period of property from 3 yrs to 5 yrs is valid in my case?
Thanks & Regards,
Saran
if house is completed within 5 years then interest deduction upto Rs.200000 is allowed.
I want to know if the loan type is of mortgage Loan against the property of Rs 15 lakh. Can we claim in this case
Team,
I’m holding two Home loans from different banks and paying interest of 3.25 Lakhs for each home loans per annum.
Both the properties are in Chennai and each house rented out 7k per month (84k per annum), I’m working in Bangalore and staying for Rent which I’m claiming HRA seperately.
Can you advise that I’m eligible for the max. of 2Lakh tax exemption under ‘Loss from House Property’ ?
or 4K tax exemption.
Dear sir, home loan principle and interest amount shown in form 16/16A upto December 2016 but my interest detected by bank upto march 2017. how many amount fill in ITR 1 for home loan interest( full 12 month /upto December) pls help
You can show amount for full 12 months in ITR. But in case of any query raised by department at time of processing of return then you can show the actual proof of interest amount.
Hello Team,
I have taken a home loan of Rs 22 lacs in May 2014 and this is my first home. I would like to know if I can claim of additional interest (above 2 lacs) while filing the ITR for year FY 2016-2017 / AY 2017-2018?
Appreciate your help and time to clarify. Thanks in advance.
you can claim deduction u/s 80EE for fy 2016-17 only when the loan has been sanctioned between 01.04.2016 to 31.3.2017. so no additional deduction can be claimed.
Thanks team..
But your response to Mr. Arpit Tiwari is different however both the cases are same.
Just curious to know the reason. Is it due to change is FY from 14-15 to 15-16.
Awaiting your response. Thanks in advance.
Hello Sir, I have taken home loan in May 2015 of 25 Lakhs. The value of property is 30Lakhs . Can I claim additional 50000/- deduction under 80EE from FY-16-17, apart form 1.5 lac under 80C, 2 Lacs under 24B, Appreciate your help and time to clarify
Yes you can claim additional deduction under 80 EE.
I have taken my first house/home loan of 32,60,000 in June-2016 and the total value of the house is 41,00,000. I have paid interest of 2,24,259 for financial year 2016-2017. Even though I have submitted the documents in my office, they have considered section 24 (interest 2,00,000) but not section 80EE. So what should I mention under section 80EE while submitting income tax returns. What I mean, do I have to mention 24259 (224259-200000) or 224259? Also, can I get this benefit only for this year or until the loan is repaid?
Thanks in advance.
You can claim balance interest u/s 80EE upto Rs.50000/-
Hello Sir,
I have taken a Home Loan of 2288765/- during December-2011 and started paying EMI from Jan-2012, can i claim additional 50000/- deduction under 80EE from FY-17-18, apart form 1.5lac under 80C, 2 Lacs under 24B, Appreciate your help and time to clarify
Thanks,
Nagaraj Mamedi
This was a new proposal which had been made in Budget 2016-17. The same will be continued in FY 2017-18 / AY 2018-19 too. First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE.
The below criteria has to be met for claiming tax deduction under section 80EE.