If you have found your right home and are planning to take a home loan especially then take advantage under the new proposal, Read carefully.

 The government proposed Budget 2019 to introduce Section 80EEA to allow for an additional interest deduction of up to Rs. 1.5 lakh on repayment of home loans. 

The total deduction in taxable income will be provided to those taking home loans up to March 31 next year to buy property worth up to Rs. 45 lakh for self-occupying.



 Scenarios For Claiming The Deduction | Read Carefully:

         A deduction for interest payments up to Rs. 1.5 lakh will be available under Section 80EEA. This deduction will be over and above the deduction of Rs. 2 lakh for interest payments available under Section 24 of the Income Tax Act.  Therefore, taxpayers will be able to claim a total deduction of Rs. 3.5 lakh for interest on a home loan, if they meet the conditions of section 80EEA. 

    The registration price of the home is restricted to Rs 45 lakh. Other than cities like Mumbai etc, a 2bhk will be available in several locations at this price. If you are looking to buy a home costing more than this amount, you will not be eligible to claim any deduction under this section.

     The tax benefit will not be on an existing loan taken before March 31,2019. The objective of introducing this new tax benefit is aimed at new buyers who don’t have a home now.

  
          Conditions for claiming the deduction:

  •   Stamp duty value of the house property should be Rs. 45 lakhs or less.
  •   The taxpayer should be a first-time homebuyer. He/she should not own any residential house property as on the date of sanction of the loan.
  •  The section also does not specify if the residential house should be self-occupied to claim the deduction. So, borrowers living in rented houses can also claim this deduction.
  •  Moreover, the deduction can only be claimed by individuals for the house purchases jointly or singly. 
  •  If a person jointly owns the house with a spouse and they both are paying the installments of the loan, then both of them can claim this deduction. However, they must meet all the conditions laid down," he explains.
   Additional Read- "Calculate Your Home Loan EMI Easily"