What is Section 80EE and section 24?

What is Section 80EE and section 24?

DEDUCTION UNDER SECTION 80EE

DEDUCTION UNDER SECTION 80EE
This section allowed the benefit of extra deduction to taxpayers over and above the deduction allowed in section 24 for interest paid against the loan borrowed for acquisition of self-occupied property.

SECTION 80EE ELIGIBILITY :

An individual who has taken loan from any bank, other financial institute or housing finance company in respect on acquisition of residential property is eligible for deduction under section 80EE.

NOTE: – only an individual is eligible to take benefit under this section that means HUF, FIRM, AOP or company or any type of person or taxpayers are not eligible to claim benefit under this section.

SECTION 80EE CONDITIONS :

To avail the benefit of this section the taxpayer mustfulfil some conditions. The conditions are as follows

1. The loan should be sanctioned during the financial year 2016-17 i.e. 01.04.2016 to 31.03.2017

2. The value of residential property should be less than or equal to 50 lakhs

3. The loan amount must be less than or equal to 35 lakhs

4. The assesses should not own any residential property as on date of loan sanctioned as this benefit is only for first time home buyers

PERIOD TO AVAIL BENEFIT :

If the assesses fulfil all the conditions mentioned above than he can avail the benefit of this deduction till the repayment of loan continues.

DEDUCTION LIMIT:

RS 50000/- Under section 80EE.

RS 200000/- Under section 24.

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