Income Tax Exemption U/s 80EEA interest on affordable housing loan U/s 80EEA |Finance minister Nirmala Sitharaman in her Association Budget 2019 reported that taxpayers can declare an extra deduction u/s 80EEA of the Personal Assessment Act, 1961 of up to Rs. 1,50,000/ - for interest paid on loans acquired up to 31st Walk 2020 for the acquisition of an affordable house esteemed up to Rs. 45 lakh. In this manner, a person buying an affordable house will presently get an upgraded interest deduction up to Rs. 3.5 lakh involving deduction u/s 80EEA up to Rs. 1.50 Lakh and existing deduction of Rs 2 Lacks u/s 24.Tax Section 80EEA

Statement 25 of the Finance (No. 2) Bill, 2019 presented another section for guaranteeing deduction under section 80EEA in an accompanying way 

After section 80EE of the Personal duty Act, the accompanying sections will be embedded with impact from the first day of April 2020, in particular:–

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80EEA. (1) In figuring the absolute pay of an assessee, being an individual not qualified to guarantee deduction under section 80EE, there will be deducted, as per and subject to the arrangements of this section, interest payable on loan taken by him from any monetary organization with the end goal of procurement of a private house property.

 (2) The deduction under sub-section (1) will not surpass one lakh and 50,000 rupees and will be permitted in figuring the complete pay off the person for the evaluation, the year starting on the first day of April 2020 and resulting in appraisal years.

 

(3) The deduction under sub-section (1) will be dependent upon the accompanying conditions, specifically:—

 (I) the loan has been endorsed by the monetary foundation during the time frame starting on the first day of April 2019 and finishing on the 31st day of Walk 2020;

 

(ii) the stamp obligation estimation of private house property doesn't surpass 45 lakh rupees;

 (iii) the assessee doesn't possess any private house property on the date of authorization of loan.

 (4) Where a deduction under this section is considered any interest alluded to in sub-section (1), the deduction will not be permitted in regard of such interest under any other arrangement of this Represent the equivalent or any other appraisal year.

 (5) For the reasons for this section,– –

 (a) the articulation "monetary foundation" will have the importance relegated to it in statement (a) of sub-section (5) of section 80EE; 

(b) the articulation "stamp obligation esteem" signifies esteem received or evaluated or assessable by any authority of the Focal Government or a State Government with the end goal of instalment of stamp obligation in the regard of the unfaltering property.

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 To give a driving force to the 'Lodging for all' objective of the Public authority and to empower the home purchaser to have minimal effort assets available to him, it is proposed to embed another section 80EEA in the Demonstration to give a deduction in regard to interest up to Rs. 1,50,000 on a loan taken for private house property from any monetary foundation subject to the accompanying conditions:

 (I) the loan has been authorized by a monetary foundation during the time frame starting on the first April 2019 to 31st Walk 2020; 

(ii) the stamp obligation estimation of house property doesn't surpass 45 lakh rupees;

 (iii) the assessee doesn't claim any private house property on the date of approval of the loan.

 It is likewise suggested that where a deduction under this section is taken into consideration any interest, the deduction will not be permitted in the regard of such interest under any different arrangements of the Represent the equivalent or any other evaluation year.

 This correction will produce results from first April 2020 and will as needs be applied compared to the evaluation year 2020-21 and ensuing appraisal years.

 On perusing the above the arrangement, the theoretical of section 80EEA is given underneath 

1.         The deduction u/s 80EEA is incorporated as a deduction under Section VI-A. 

2.         This deduction is notwithstanding the deduction of Rs. 2 Lakh accessible u/s 24 of the Personal Assessment Act, 1961. 

3.         This deduction is accessible just to an individual citizen. 

4.         The most extreme measure of deduction u/s 80EEA that can be guaranteed under this section in an appraisal year is Rs. 1,50,000. 

5.         The loan is taken from a monetary organization which implies a bank and a lodging finance company. 

6.         The loan is taken with the end goal of securing private house property as it were. 

7.         The loan is endorsed by the monetary foundation in F|Y 2019-20. 

8.         The stamp obligation estimation of the property will not surpass Rs. 45 Lakh. 

In the event that all the previously mentioned conditions are fulfilled, at that point, the individual can guarantee the deduction u/s 80EEA from AY 2020-21. 

Examination of the section 80EEA: The deduction is accessible just if the individual isn't the proprietor of any other private house property on the date of assent of the loan. After the approval, the person can purchase another private house property.

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