Deduction in respect of interest on loan taken for residential house property - Section 80EE - Income Tax - Ready Reckoner - Income Tax

Deduction in respect of interest on loan taken for residential house property - Section 80EE The deduction is available only to Individual not to HUF or other type of Assessee. The Deduction is available on interest payable on loan taken by the individual from any financial institution for the purpose of acquisition of a residential house property. The deduction shall not exceed ₹ 50,000 The deduction shall be subject to following conditions: i. The loan has been sanctioned by the financial institution during the period beginning on the 1.4.2016 and ending on the 31.3.2017 ii. The loan sanctioned for acquisition of the residential house property does not exceed ₹ 35 lakh iii. The value of the residential house property does not exceed 50 lakhs iv. The assessee does not own any residential house property on the date of sanction of the loan. Note: Where the deduction under this section is allowed for any interest, the deduction shall not be allowed in respect of such interest under any other provisions of the Act for the same or any other assessment year. Under section 80EE , additional tax deduction claim upto ₹ 50,000 can be made. This is exclusive of the deduction limit upto ₹ 1.5 lakh available under Section 80C and upto ₹ 2 lakhs available under Section 24 of the IT Act, 1961 . Only individual taxpayers can claim deduction under Section 80EE on properties purchased either singly or jointly. If an individual has bought a property jointly with his or her spouse and they are both paying the instalments of the loan, then the two can individually claim this deduction. To claim this benefit, it is not necessary for the taxpayer to reside in the property for which he or she is claiming this deduction. Borrowers living in rented homes can also claim this deduction.