Section 80EEA of the Income Tax Act. Additional deduction of interest payment in connection with the

 home loan (related to section 80EE and section 24B of the Income Tax Act)

 

A new section 80EEA has been inserted by the government to allow for the deduction of interest from A.Y 2020-21 (F.Y 2019-20). Existing provisions of section 80EE allow for a deduction of up to Rs 50,000 for interest paid by first-time buyers for a sanctioned loan from a financial institution between April 1, 2016, and March 31, 2017.

 

Admissibility of amount

 

The amount of deduction available under this section should be calculated as follows, whichever is less: -

Download and Prepare at a time 50 Employees Form 16 Part A&B for the Financial Year 2021-22

Section 80EEA additional deduction of home loan interest
Section 80EEA additional deduction of home loan interest

The actual interest paid or Rs. 1.50.000 / -

 

This deduction is available in addition to the exemption under section 24B provided other conditions are met.

 

Therefore, taxpayers can claim a total deduction of Rs 3.50 lakh towards home loan interest, if they meet the conditions of section 80EEA.

 

Who is eligible?

 

Individual evaluators only.

 

Section 80EEA additional deduction of home loan interest


Section 80EE: Deduction is available on home loan interest in this section. The maximum deduction available as per this section is Rs. 50,000 / - under certain conditions

 

The cost of the house should be up to Rs. 50 lakh

 

The loan amount must not exceed Rs. 35 lakh

 

The loan is expected to be sanctioned from April 1, 2016, to March 31, 2017

Download and Prepare at a time 50 Employees Form 16 Part B for the Financial Year 2021-22

Master Sheet
Income Tax form 16 Part B