Borrowers taking home loans from banks and non-banking finance companies such as Bajaj Housing Finance Limited, can take advantage of income tax deduction under Section 80EE, to avail home loan tax benefits. For first time home buyers, Section 80EE of the Income Tax Act allows these individuals to claim an additional Rs. 50,000 deduction on the home loan interest repaid in a financial year.
The borrower can continue to claim the deduction until they have repaid the entire loan. Further, this deduction under Section 80EE is available only to individuals. Therefore, a company, AOP, HUF, or other kinds of taxpayers cannot claim any benefit under this section. Additionally, there is no requirement for the house to be self-occupied for claiming home loan tax benefit.