Under Section 24 of the Income Tax Act, a taxable individual can claim deduction on payment of interest for a home loan. The property must be self-occupied and maximum deduction allowed is Rs. 2 lakhs.<\/p>\n\n\n\n
You can also\nclaim a deduction for interest paid on housing loan taken before completion of\nconstruction of the property. It is known as pre-construction interest. It is\nallowed to be deducted in 5 equal instalments starting from the financial year\nin which construction is completed. Rs. 2 lakhs limit is applicable for\npre-construction interest as well, in case of self-occupied property.<\/p>\n\n\n\n
Under Section 80EE, there is a provision for an additional deduction of Rs. 50,000 for first-time homeowners for interest on their housing loans. The value of the property should be less than or equal to Rs. 50 lakhs and the amount of the home loan should be Rs. 35 lakhs or less. Loans sanctioned between 1st<\/sup> April 2016, and after 31st<\/sup> March 2017, cannot claim deduction under this section. This deduction shall be allowed in addition to the deduction allowed under Section 24(b).<\/p>\n\n\n\n\n\n By inserting\nsection 80EEA, the government has extended the limit of deduction up to Rs. 1.5\nlakhs. This section applies to any individual paying interest on the a against\nresidential property provided that the stamp value of the property is less than\nRs. 45 Lakhs. Loans sanctioned before 1st<\/sup> April 2019 and after 31st<\/sup>\nMarch 2020 are not eligible for deduction under this section. Note that at the\ndate of sanction, the individual should not own any other residential property.\nLastly, the individual should not be eligible for claiming any deduction under\nSection 80EE.<\/p>\n\n\n\nDeductions Under Section 80EEA<\/strong><\/h2>\n\n\n\n