Additional Deduction Of Interest On Home Loan (Section 80EE)
PrintListen to this Article
Additional Deduction Of Interest On Home Loan (Section 80EE)
A new section has been introduced in Budget 2013. It provides that while computing the total income of an assessee, being an individual there shall be deducted interest payable on loan taken by him from any financial institution for the purpose of acquisition of residential house property. This section allows for Additional deduction of Rs. 1 Lakhs for the Assessment year 2014-15 (FY 2013-14).
CONDITIONS
Deduction under this section shall be subject to the following conditions:-
• The value of house property does not exceed Rs.40 Lakhs.
• The assessee does not own any other house property on the date of sanction of loan.
• Loan must be from eligible financial institutions.
• Loan is sanctioned during the period beginning from 1st April, 2013 and ending on 31st March, 2014.
• Loan sanctioned does not exceed Rs. 25 Lakhs.
• Assessee is a first time buyer of House Property.
It is also provided that where a deduction under this section is allowed for any assessment year in respect of interest, deduction shall not be allowed in respect of such interest under any other provisions of the Income Tax Act for the same or any other Assessment year.
ELIGIBLE FINANCIAL INSTITUTIONS
The Financial institution providing loan must be either a Bank or a Public company formed with the main object of providing long term Housing Finance.
Note:- Deduction will be allowed only if loan is taken from Public company.
OVER AND ABOVE THE DEDUCTION OF Rs. 1,50,000
Deduction u/s. 80EE will be over and above the deduction of Rs. 1,50,000 allowed for self occupied properties under section 24 of the Income Tax Act.
ONE TIME DEDUCTION
This scheme is for one year only. In case where the interest payable for the previous year relevant to assessment year is less than one lakh rupees then balance can be claimed in AY 2015-16 i.e. FY 2014-15.
Category : Income Tax | Comments : 0 | Hits : 623
Selling property in India? You're probably worried about the capital gains tax bill that comes with it. Here's some good news—both the old and new tax regimes offer you ways to save big on taxes if you reinvest your sale money in a residential house. Let me break down Section 54F (from the old Income Tax Act 1961) and Section 86 (from the new Income Tax Bill 2025) in simple words, so you can understand which rules apply to you and how to make the most of them. What's the Big...
Income Tax Alert - Here Are 5 High-Value Transactions That May Come Under Scrutiny. Large Cash Deposits: Any cash deposit exceeding Rs 10 lakh in a financial year across savings accounts draws the attention of the income tax department. Even if deposits are spread across multiple accounts, the cumulative amount beyond the threshold triggers scrutiny. Fixed Deposits: Surpassing the Rs 10-lakh limit in fixed deposits within a financial year prompts inquiries regarding the source of f...
Delhi Court Sentences Woman to 6 months Jail for not filing the return of income (ITR) discussed. Accordingly, the accused is held guilty of not filing the return of income for the assessment year 2014-15 under Section 276CC of The Act. Accordingly, the accused is convicted for an offence punishable under Section 276CC of the Act," the court said in the judgement. "The convict is awarded a sentence of simple imprisonment for six months with a fine of Rs 5,000 and in default to unde...
Payments to MSME vendors
Corporates, Non-corporates or government department all are procuring major part of services or goods from the MSMEs. There are provision under the Micro, Small, and Medium Enterprises Development (MSMED) Act, to ensure that businesses make payments to MSMEs within a specified time frame, and failure to which can impact the deduction claims for such payments. To facilitate timely payments to micro, small, and medium enterprises (MSMEs) and address the challenges faced by these businesses in rec...
In the Income tax act, the words “Turnover”, “Gross receipts” and Sales are used at many places. In the common business parlance, the terms sales and turnover are used interchangeably. However, as per Income Tax law, guidelines are available on the question of what constitutes turnover. Understanding the concepts of these words is necessary for the purpose of the tax audit. An audit is mandatory for corporate assessees, irrespective of the amount of turnover. In ...
Comments