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Deduction in respect of Interest on Loan taken for Residential House Property [Section 80EE]

 

An individual shall be allowed a deduction under section 80EE on account of interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential property subject to the following conditions being satisfied:

  1. the loan has been sanctioned by the financial institution during the period beginning on 1-4- 2016 and ending on 31-3-2017;

  2. the amount of loan sanctioned for acquisition of the residential house property does not exceed Rs. 35,00,000 (Rs. 35 Lakh) ;

  3. the value of residential house property does not exceed Rs. 50,00,000 (Rs. 50 Lakh) ;

  4. the assessee does not own any residential house property on the date of sanction of loan.

  5. where a deduction under this section is allowed for any interest, deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year.

Quantum of Deduction:

The deduction under this section shall not exceed Rs. 50,000 and shall be allowed in computing the total income of the individual for the assessment year beginning on 1-4-2017 and subsequent assessment years.

Double Deduction under Section 80EE is not possible -

If deduction is claimed under section 80EE, no deduction will be allowed in respect of such interest under any other provision of the Act for the same or any other assessment year.

  1. For the purposes of this section,—

    1. “Financial institution” means a banking company to which the Banking Regulation Act, 1949 applies, or any bank or banking institution referred to in section 51 of that Act or a housing finance company;

    2. “Housing finance company” means a public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes.

  2. The deduction under this section is over and above the limit of ` 2,00,000 provided for a self-occupied property under section 24 of the Act.

Deductions to be made in Computing Total Income [Sections 80A to 80U (Chapter VIA)]

Related Topics...Deductions from Gross Total Income

  1. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "PAYMENT & INVESTMENT" ARE ALLOWED FROM SECTION 80C TO 80GGC

    Section 80C Section 80CCC Section 80CCD
    Section 80CCG Section 80D Section 80DD
    Section 80DDB Section 80E Section 80EE
    Section 80G Section 80GG Section 80GGA
  2. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "INCOMES" ARE ALLOWED FROM SECTION 80-IA TO 80U

    Section 80-IA Section 80-IAB Section 80-IAC
    Section 80-IB Section 80-IBA Section 80-IC
    Section 80-ID Section 80-IE Section 80-JJA
    Section 80-JJAA Section 80-LA Section 80-P
    Section 80-PA Section 80-QQB Section 80-RRB
    Section 80-TTA Section 80-TTB Section 80-U
 

 

 
 
 
 
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