Home buyers can claim the benefits of Rs. 1.50 lakhs under additional income tax deduction over home loan interest payment under Section 80EEA. Read the below-given article to know more about section 80EEA deduction, its eligibility criteria, no. of times you can claim 80EEA, the required documents, and 80EEA & 80EE differences.
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Section 80EEA
Section 80EEA is for first-time home buyers to get additional income tax deductions of up to ₹ 1.50 lakhs annually on home loan interest payments.
Home buyers can claim the deduction until the loan is fully repaid.
However, there are various criteria to go through to use this deducted amount in a legal and verified way.
No. of times a home buyer can claim for section 80EEA
First-time home-buyers can claim the deduction under 80EEA till he/she has repaid their home loan.
And this is kind of advantage as well for them to use 80EEA during the duration of home loan repayment.
Eligibility criteria for 80EEA Deduction 2024
- Only first-time home buyers can take advantage of Section 80EEA. And this limits the other individuals or sectors to be eligible for 80EEA.
- Over to that first-time home-buyers should be those who don’t hold property in their name at the time of appealing for a home loan. And this is the actual point that is noticed and verified before providing 80EEA benefits.
- As the law does not specify whether the home buyer has to be an Indian resident to claim the deduction. Tax experts have also given the clarification that even non-residents can use section 80EEA for deduction against home loan interest payments.
- HUFs, partnership firms, companies, or any other type of taxpayers can’t take advantage of Section 80EEA.
- Loan sanctioned date should be in between 1st April 2019 and 31st March 2022.
- The stamp duty property value should go a maximum of Rs. 45 lakhs.
- Home buyers should not have benefited from any deduction under section 80EE.
- And the loan should be sanctioned by a financial institution.
- Property located in metro-cities should not go beyond a 645 sq. ft carpet area. Some of the listed metro cities are Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, etc.
Needed Documents for 80EEA Deduction 2024
Below given is the list of the documents required to claim 80EEA deduction
- Form 16
- Home loan certificate from the bank.
- Bank Account Statement from which the EMI is being paid.
- Letter of Home Loan Sanction from the bank.
The person who is claiming for section 80EEA has made a home loan payment. However, the person can claim 80EEA even if it is not present in your form 16 but you have needed documents with you.
Also check-out – TMC Property Tax 2022- Online Bill Payment, Property Tax Guide In India 2022 – Calculation, Types & Online Payment
Difference between 80EEA and 80EE
The actual differences between 80EE and 80EEA are mentioned below:
| 80EE | 80EEA |
| Rs. 50,000 is the maximum deduction amount on the interest portion of the loan EMIs. | Rs. 1,50,000 is the maximum deduction amount on the interest portion of the loan EMIs. |
| The maximum loan amount should be Rs. 35 lakhs. | No limit on loan value |
| Only applicable for the home loan approved in FY 2013-14, FY 2014-15, and FY 2016-17 | Only applicable for the home loan approved in FY 2020-21 and FY 2021-22 |
| Maximum rebate amount – Rs. 50,000 | Maximum rebate amount – Rs. 1,50,000 |
| Lock-in Period – None | Lock-in period – None |
Can I get benefited under both sections 80EE and 80EEA deduction?
First-time Home-buyers are sometimes confused between 80EE and 80EEA deduction. And that is normal as well because both sections have some similarities but with little variations.
Home buyers claiming benefits under section 80EE cannot claim a deduction under section 80EEA. And this is the official statement from the guidelines provided by the government.
Also check-out – BBMP Property Tax 2022-23: Online Payment Process
Will Section 80EEA get extended for 2023-24?
The additional tax deduction applicable for affordable housing under 80EEA under Income-tax Act 1961 will not be going to carry forward from April 1, 2022.
This is because the government of India in its Budget 2023 proposal has not stated to extend this tax break for the upcoming financial year 2023-24.
Also check-out – Income Tax Rebate On Home Loan 2022
FAQs
| Is every individual eligible to claim 80EEA deduction?
First-time home buyers are the only ones who can claim 80EEA. |
| What should be the value of the property to avail advantages of section 80EEA?
The stamp duty property value should be Rs. 45 lakhs or less. |
| Can joint owners separately claim for deduction under section 80EEA?
Yes. Each of them can claim a deduction of Rs. 1.50 lakh if all the conditions of the Income Tax Act are met. |
| What do first-time home buyers mean to claim section 80EEA?
First-time home buyers are the one who doesn’t own any of the property while applying for a loan. |
| What kind of properties comes under consideration to claim 80EEA deduction?
Only residential properties are considered. And loans taken for construction or renovation are not get considered for the same. |
