Section 80ee Income Tax Deduction For Interest On Home Loan
Borrowers taking home loans from banks and non-banking finance companies such as Bajaj Finserv, can take advantage of income tax deduction under Section 80EE, for availing home loan tax benefits. For first time home buyers, Section 80EE of the Income Tax Act allows home loan tax benefits. Borrowers can claim income tax deductions on their home loan interest towards their first house property.
The Section 80EE allows deductions for the interest paid on a home loan for up to a maximum of Rs. 50,000 in every financial year. The borrower can continue to claim the deduction until they have repaid the entire loan.
What is Section 80EE
The Government of India introduced Section 80EE in the Income Tax Act in the financial year 2013-14. Initially, it was available only for two years, for financial years 2013-14 and 2014-15. The GOI reintroduced this section from the financial year 2016-17.
The home loan tax benefit offered under Section 80EE is not related to the Rs. 2 lakh offered by Section 24 of the Income Tax Act.
Who can Claim Deduction under Section 80EE
Income tax 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. As the section does not mention if the applicant must be a Resident Indian to be able to claim the benefit, both Resident and Non-Resident Indians can claim this income tax deduction under Section 80EE. There is also no requirement for the house to be self-occupied for claiming home loan tax benefit.
