What is this section 80 EE? Can I claim tax benefits if I take home loan now?
Section 80EE is applicable for claiming deductions on home loan interest payments for first time home buyers only. The benefits of the scheme can only be claimed by first time home buyers who have purchased a property through a home loan in the fiscal 2013-14. The limit of this tax deduction is set at Rs.1 lakh in the form of a one-time tax relief.
Terms for Claiming Section 80EE Deductions:
• Home loans sanctioned within the time frame of 1st April 2013 to 31st March 2014 (FY 2013-14).
• Loan amount limited to a maximum of Rs.25 lakhs can be used to claim deductions.
• The overall value of the purchased residential property is capped at Rs.40 lakhs.
• The home loan in question pertains to the first house property owned by the applicant.
• The amount of deduction is limited to Rs.1 lakh on interest payments on home loans availed in the fiscal 2013-14.
• Eligible taxpayers can claim the benefit only for the fiscal 2013-14.
• If the interest payments are less than Rs.1 lakh for FY 2013-14, the remaining deduction balance may be claimed in the next year, i.e. FY 2014-15.
• Any balance of the deduction limit available after FY 2014-15 cannot be claimed as deductions.
• The property in question can be either self-occupied or non self-occupied.
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