The sum paid as reimbursement of important measure of home advance by an Individual/HUF is permitted as duty deduction under Section 80C of the Income Tax Act. It was first presented in the Union Budget for Financial Year 2013-14 as a way to help home purchasers in the lower salary gather through assessment reliefs. Around then, the measure of tax reduction given by this section was Rs. 1 lakh which was accessible to be guaranteed just once by the first run through home purchaser.
Government reintroduced section 80ee in the Union Budget 2016-17. The quantum of deduction has been changed to Rs. 50,000 for intrigue paid on home advance. This deduction is accessible far beyond the deduction of section 24 and section 80C which are Rs. 2,00,000 and Rs. 1,50,000 individually.
Qualification Criteria for Claiming Deduction under Section 80ee
To guarantee deduction under Section 80ee, the citizen must fulfill the accompanying conditions:
- The deduction would be accessible to be asserted from Financial Year 2016 onwards.
- The deduction can be benefited on home credits authorized between first April 2016 and 31st March 2017, which has been broadened.
- The estimation of property for which the advance has been taken ought to be not as much as Rs. 50 lakh.
- The home advance sum ought not to surpass Rs. 35 lakh.
- The tax reduction here can be asserted till the time reimbursement of credit proceeds.
- Deduction is just appropriate on home advance paid for first house property.
- The property being referred to can be either self-possessed or non-self-involved.
- In the event that you guarantee deduction under this section then a man won’t be qualified to guarantee the deduction under Section 24 again for a similar measure of intrigue.
Qualification for Claiming Section 80ee Deductions
The qualification of the home credit borrower relies upon the accompanying focuses:
- The deductions under this section can be asserted just by individual citizens on properties bought either separately or together.
- There are a couple of kinds of assesses which are not permitted to guarantee this deduction like Hindu Undivided Families (HUFs), organizations, trusts, Association of Persons (AOP) and so on.
- Section 80ee is material on for every individual premise rather than for each property premise. Along these lines, assume a man have bought property mutually with life partner and they both are paying the portions of credit then both can exclusively guarantee this deduction
- It isn’t important to live in the property for which one need to guarantee this deduction. In this way, borrowers remaining in a leased convenience can likewise guarantee this deduction
Asserting Section 80ee Tax Deductions:
A man can guarantee this deduction while documenting the pay expense form frame by indicating the measure of intrigue paid in proper place. The expected archives to be conveyed spared without come up short are the record from the bank indicating the premium and vital sum paid. What’s more, one may need to deliver a report from the bank that the announcement of premium paid and main sum on home advance and additionally the sum paid till date.