{"id":19034,"date":"2023-02-20T11:33:38","date_gmt":"2023-02-20T06:03:38","guid":{"rendered":"https:\/\/magicsheds.in\/?p=19034"},"modified":"2023-02-20T11:35:11","modified_gmt":"2023-02-20T06:05:11","slug":"eligibility-rebate-applicability-period-total-benefit","status":"publish","type":"post","link":"https:\/\/magicsheds.in\/index.php\/2023\/02\/20\/eligibility-rebate-applicability-period-total-benefit\/","title":{"rendered":"Eligibility, rebate, applicability period, total benefit"},"content":{"rendered":"<div>\n<p>Under <strong>Section 80EEA<\/strong>, first-time home buyers investing in affordable homes in India enjoy additional income tax deductions on home loan interest payment. However, the benefits of <strong>Section 80EEA<\/strong> are applicable only if they buy an affordable property (worth Rs 45 lakh) with the help of a <span style=\"color: #0000ff;\">home loans<\/span>.<\/p>\n<p><strong>Section 80EEA of the Income Tax Act helps home buyers make up to Rs 1.50 lakh of their income in a year tax-free<\/strong>. The applicability of Section 80EEA is valid on home loans taken between April 1, 2019, and March 31, 2022.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"Is_Section_80EEA_applicable_for_2023\"><strong>Is Section 80EEA applicable for 2023?<\/strong><\/span><\/h2>\n<p>Homebuyers applying for housing loans starting April 1, 2022, are not able to claim Section 80EEA deduction as the benefits offered under this section ended on March 31, 2022.\u00a0 Taxpayers are expecting finance minister Nirmala Sitharaman to be reintroduced in the Union Budget 2023-24. The FM will present the Union Budget on February 1, 2023.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"Section_80EEA_of_Income_Tax_Act_Background\"><strong>Section 80EEA of Income Tax Act: Background<\/strong><\/span><\/h2>\n<p>In its first term that started in 2014, the prime minister Narendra Modi-led NDA government launched its flagship \u2018Housing for All by 2022\u2019 programme. With the same objective, it also announced the launch of the <span style=\"color: #0000ff;\">Pradhan Mantri Awas Yojana (PMAY)<\/span>, to incentivise house purchase through subsidies offered by the centre. 80EEA was introduced by finance minister Nirmala Sitharaman in the <span style=\"color: #0000ff;\">2019 Union Budget<\/span> with an aim to give a boost to the centre\u2019s \u2018Housing for All by 2022\u2019 programme, by way of offering additional tax benefits on the purchase of affordable homes.<\/p>\n<p>Offered over and above the benefits enjoyed by other categories of buyers, the benefits to first-time home buyers in India are offered under <span style=\"color: #0000ff;\">Section 80EE<\/span> and<strong> Section 80EEA<\/strong>.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"Section_80EEA_deduction\"><strong>Section 80EEA deduction<\/strong><\/span><\/h2>\n<p>Launched in the 2019 Budget, Section <strong>80EEA helps first-time home buyers to save an additional Rs 1.50 lakh per year against home loan interest payments if they are buying an \u2018affordable property\u2019<\/strong>.<\/p>\n<p>The Section 80EEA deduction is over and above the Rs 2-lakh-deduction limit allowed under <em><strong>Section 24 (b)<\/strong><\/em>. However, Section 80EEA deduction is linked to the cost of the house and is extended on the purchase of housing units worth up to Rs 45 lakh. The affordability of the house is also decided by the carpet area of the property. If a unit is located in a metropolitan city, its carpet area should not exceed 645 sqft or 60 sqm, for the owner to claim the benefit under Section 80EEA. For units in any other city, the carpet area has been limited at 968 sqft or 90 sqm.<\/p>\n<p>\u00a0<\/p>\n<p><iframe title=\"Benefits For First Time Homebuyers Under Section 80EEA Of Income Tax Act\" width=\"1170\" height=\"658\" data-src=\"https:\/\/www.youtube.com\/embed\/KwXvvC3f0VE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" data-load-mode=\"1\"><\/iframe><\/p>\n<p>\u00a0<\/p>\n<h2\/>\n<h2><span id=\"Section_80EEA_deduction_amount\"><strong>Section 80EEA deduction amount\u00a0<\/strong><\/span><\/h2>\n<p><strong>One can get up to Rs 1.50 lakh of deduction under Section 80EEA.<\/strong> This is over and above the deduction of Rs 2 lakhs on interest payment under Section 24(b). For a first-time buyer, then, the annual tax rebate against home loan interest payment thus comes to Rs 3.50 lakhs.\u00a0 Since the \u2018affordable\u2019 tag of the property remains the determining factor on whether or not you can claim deductions under Section 80EEA, it becomes pertinent to have a clear idea about what an affordable property is.<\/p>\n<h2\/>\n<h2><span id=\"Section_80EEA_Features\">Section 80EEA: Features<\/span><\/h2>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<h2><span id=\"Who_can_claim_Section_80EEA_deduction\"><strong>Who can claim Section 80EEA deduction?<\/strong><\/span><\/h2>\n<p>Only <span style=\"color: #993300;\">first-time home buyers<\/span> can claim benefits under this Section, as it specifies that at the time of grant of the home loan the borrower should not own any residential property.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"Who_is_a_first-time_homebuyer_according_to_Section_80EEA\"><strong>Who is a first-time homebuyer according to <\/strong><strong>Section <\/strong><strong style=\"font-family: inherit;\">80EEA?<\/strong><\/span><\/h2>\n<p>A first-time home buyer is a person who does not own a property in his name at the time of applying for his home loan. For tax calculation purposes, a working adult, even if single, is considered a separate household and thus, a first-time home buyer even if his parents own properties.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"What_is_the_deduction_for_under_Section_80EEA\"><strong>What is the deduction for under <\/strong><strong>Section <\/strong><strong style=\"font-family: inherit;\">80EEA?<\/strong><\/span><\/h2>\n<p>Deduction can be claimed against <span style=\"color: #993300;\">home loan interest<\/span> payment only.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"What_is_Section_80EEA_deduction_limit\"><strong>What is Section 80EEA deduction limit?<\/strong><\/span><\/h2>\n<p>The deduction limit is <span style=\"color: #993300;\">Rs 1.50 lakhs per year<\/span>.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"What_is_the_period_covered_under_Section_80EEA\"><strong>What is the period covered under Section 80EEA?<\/strong><\/span><\/h2>\n<p>Borrowers whose home loans are sanctioned between <span style=\"color: #993300;\">April 1, 2019 and March 31, 2022<\/span>, can claim benefits.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"Which_category_of_buyer_can_apply_for_deduction_under_Section_80EEA\"><strong>Which category of buyer can apply for deduction under Section 80EEA?<\/strong><\/span><\/h2>\n<p>Only <span style=\"color: #993300;\">individual<\/span> buyers can claim deductions under this section. This means companies, Hindu undivided families, etc., cannot claim benefits.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"What_should_be_the_source_of_the_home_loan_for_Section_80EEA_to_apply\"><strong>What should be the source of the home loan for Section 80EEA to apply?<\/strong><\/span><\/h2>\n<p>The buyer has to take the home loan from a <span style=\"color: #993300;\">financial institution (banks housing finance companies)<\/span> and not from family members, relatives or friends.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"What_should_be_the_property_value_for_section_80EEA_to_apply\"><strong>What should be the property value for section 80EEA to apply?<\/strong><\/span><\/h2>\n<p>The stamp value of the property should not exceed <span style=\"color: #993300;\">Rs 45 lakhs<\/span>.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"What_sort_of_property_is_covered_under_80EEA\"><strong>What sort of property is covered under 80EEA?<\/strong><\/span><\/h2>\n<p>Buyers of <strong>residential house property<\/strong> can claim the benefit. It is also specified that the loan must be borrowed for <span style=\"color: #993300;\">buying the property<\/span> and not reconstruction, repair, maintenance, etc.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"What_is_the_limitation_under_section_80EEA\"><strong>What is the limitation under section 80EEA?<\/strong><\/span><\/h2>\n<p>If a buyer is claiming deductions under <span style=\"color: #993300;\">Section 80EE<\/span>, he cannot claim deductions under Section 80EEA.<\/p>\n<h2><span id=\"For_how_many_times_the_deduction_under_80EEA_can_be_claimed\"><strong>For how many times the deduction under 80EEA can be claimed?<\/strong><\/span><\/h2>\n<p>The deduction under 80EEA can be claimed till you have repaid your home loan.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<h3><strong>Can NRIs claim 80EEA <\/strong><strong>deduction<\/strong><strong>?<\/strong><\/h3>\n<p>Since the law does not specify whether a first-time buyer has to be a resident Indian to claim deduction, it has been interpreted by tax experts that even non-residents claim deductions under Section 80EEA.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"Conditions_to_claim_80EEA_deduction\"><strong>Conditions to claim 80EEA <\/strong><strong>deduction <\/strong><\/span><\/h2>\n<h3><strong>What is the carpet area limit of units, to claim deduction under Section 80EEA?<\/strong><\/h3>\n<p>According to the Finance Bill, if a unit is located in a metropolitan city, its carpet area should not exceed 645 sq ft or 60 sq metres, to claim the Section 80EEA benefit. For units in any other city, the carpet area has been limited at 968 sq ft or 90 sq metres.<\/p>\n<p>\u00a0<\/p>\n<h3><strong>Which cities are considered metropolitan cities under Section 80EEA?<\/strong><\/h3>\n<p>Cities that are considered metropolitan for this purpose are Bengaluru, Chennai, Delhi, Faridabad, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai and Noida.<\/p>\n<p>\u00a0<\/p>\n<h3><strong>Can Section 80EEA <\/strong><strong>deductions be claimed\u00a0<\/strong><strong>if the property is not self-occupied?<\/strong><\/h3>\n<p>Section 80EEA does not specify if the property must be self-occupied, to seek the tax break. This also allows buyers who are living in rented accommodations to claim deductions while also claiming HRA benefits under Section 80GG.<\/p>\n<p>\u00a0<\/p>\n<h3><strong>Can joint owners claim Section 80EEA <\/strong><strong>deductions\u00a0 <\/strong><strong>separately?<\/strong><\/h3>\n<p>In case the joint owners are also co-borrowers, they can both claim Rs 1.50 lakhs each as deductions under this Section, provided they meet all the other conditions.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"Income_tax_deductions_for_interest_paid_on_home_loan\"><strong>Income tax deductions for interest paid on home loan<\/strong><\/span><\/h2>\n<p>\u00a0<\/p>\n<h2\/>\n<h2><span id=\"80EE_vs_80EEA\"><strong>80EE vs 80EEA<\/strong><\/span><\/h2>\n<p>First-time buyers must know the difference between Section 80EE and Section 80EEA. Those claiming deductions under Section 80EE cannot claim deductions under Section 80EEA. This is specifically mentioned in the law.<\/p>\n<p>\u00a0<\/p>\n<h2\/>\n<h2><span id=\"Difference_between_80EE_and_80EEA\"><strong>Difference between 80EE and 80EEA<\/strong><\/span><\/h2>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Particulars<\/strong><\/td>\n<td><strong>Section 80EE<\/strong><\/td>\n<td><strong>Section 80EEA<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Property value<\/td>\n<td>Up to Rs 50 lakhs<\/td>\n<td>Up to Rs 45 lakhs<\/td>\n<\/tr>\n<tr>\n<td>Loan amount<\/td>\n<td>Up to Rs 35 lakhs<\/td>\n<td>Not specified<\/td>\n<\/tr>\n<tr>\n<td>Loan period covered<\/td>\n<td>April 1, 2016 to March 31, 2017<\/td>\n<td>April 1, 2019 to March 31, 2021<\/td>\n<\/tr>\n<tr>\n<td>Maximum rebate<\/td>\n<td>Rs 50,000<\/td>\n<td>Rs 1.50 lakhs<\/td>\n<\/tr>\n<tr>\n<td>Lock-in period<\/td>\n<td>None<\/td>\n<td>None<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<p><strong><em>See also: All about <span style=\"color: #0000ff;\">carpet area<\/span><\/em><\/strong><\/p>\n<h3\/>\n<h3><strong>80EE deduction<\/strong><\/h3>\n<p>First-time home buyers can claim deduction of up to Rs 50,000 under Section 80EE in a financial year against payment of home loan interest.\u00a0 <strong>80EE deductions<\/strong> can be claimed till the home loan is fully repaid. Also note that 80EE deduction is available only to individuals. This means an HUF, an AOP, a company, etc., cannot claim 80EE deduction.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"Difference_between_Section_80EEA_and_Section_24b\"><strong>Difference between Section 80EEA and Section 24(b)<\/strong><\/span><\/h2>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Category<\/strong><\/td>\n<td><strong>Section 24(b)<\/strong><\/td>\n<td><strong>Section 80EEA<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Possession<\/td>\n<td>Must<\/td>\n<td>Not required<\/td>\n<\/tr>\n<tr>\n<td>Loan source<\/td>\n<td>Banks or personal sources<\/td>\n<td>Only banks<\/td>\n<\/tr>\n<tr>\n<td>Deduction limit<\/td>\n<td>Rs 2 lakhs or entire interest*<\/td>\n<td>Rs 1.50 lakhs<\/td>\n<\/tr>\n<tr>\n<td>Property value<\/td>\n<td>No specification<\/td>\n<td>Rs 45 lakhs<\/td>\n<\/tr>\n<tr>\n<td>Loan period<\/td>\n<td>Loans taken after April 1, 1999<\/td>\n<td>April 1, 2019 to March 31, 2021<\/td>\n<\/tr>\n<tr>\n<td>Buyer category<\/td>\n<td>All home buyers<\/td>\n<td>First-time individual home buyers<\/td>\n<\/tr>\n<tr>\n<td>Lock-in period**<\/td>\n<td>None<\/td>\n<td>None<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<p><em>*While a rebate of Rs 2 lakhs is allowed for self-occupied property, the entire interest is allowed as deduction in case of let-out property.<\/em><\/p>\n<p>\u00a0<\/p>\n<p><em>**Section 80C specifies that buyers should not sell the property for five years, to claim deductions. This is known as the lock-in period.<\/em><\/p>\n<p>\u00a0<\/p>\n<p>Buyers can claim deductions under both, Section 24(b) and Section 80EEA, and enhance their total non-taxable income to Rs 3.50 lakhs, if they meet the eligibility criteria. However, deductions under Section 80EEA can only be claimed after exhausting the Rs 2-lakh limit under Section 24(b).<\/p>\n<p>\u00a0<\/p>\n<p><strong><em>See also: All about <span style=\"color: #0000ff;\">e stamping <\/span><\/em><\/strong><\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"How_home_buyers_can_use_80EEA_to_claim_maximum_deduction\"><strong>How home buyers can use 80EEA to claim maximum deduction?<\/strong><\/span><\/h2>\n<p>Since Section 80EEA has been introduced to help the middle-income group to own a home by way of higher monetary support, let us see how much of his income a person can make non-taxable, if he were to buy his first home today.<\/p>\n<h3\/>\n<h3><strong>80EEA tax calculation example<\/strong><\/h3>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td>Rahul Khanna works at an IT company in Noida and his annual salary package is Rs 15 lakhs. Let us assume that he is not enjoying any tax deductions so far. At the current tax slab, his total taxable income would be:<\/p>\n<p>\u00a0<\/p>\n<p>Rs 15 lakhs \u2013 Rs 40,000 (This is the standard deduction all tax payers in India enjoy) = Rs 14.60 lakhs<\/p>\n<p>Khanna falls in the Rs 12.5 lakhs-Rs 15 lakhs tax bracket. So, the highest rate at which his income will be taxed is 30%.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Split of Rs 14.60 lakhs for tax calculations<\/strong><\/p>\n<p>Rs 2.5 lakhs (@0%) = 0<\/p>\n<p>Rs 2.5 lakhs (@5%) = Rs 12,500<\/p>\n<p>Rs 5 lakhs (@20%) = Rs 1,00,000<\/p>\n<p>Rs 4.6 lakhs (@30%) = Rs 1,38,000<\/p>\n<p>Total = Rs 2,50,500<\/p>\n<p>+ cess (@4%) = Rs 10,020<\/p>\n<p>\u00a0<\/p>\n<p><strong>Khanna\u2019s total tax outgo = Rs 2,60,520<\/strong><\/p>\n<p>\u00a0<\/p>\n<p>Now, let us assume that Khanna invests in his maiden property to lower his tax outgo. He is buying a property worth Rs 45 lakhs, for which he is taking 80% of the property value (Rs 36 lakh) as loan from a scheduled bank at an 8% interest rate.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Key numbers<\/strong><\/p>\n<p>Loan amount: Rs 36 lakhs<\/p>\n<p>Tenure: 15 years<\/p>\n<p>Interest rate: 8%<\/p>\n<p>\u00a0<\/p>\n<p><strong>This would lead to:<\/strong><\/p>\n<p>EMI of Rs 34,403<\/p>\n<p>Total interest (in 15 years): Rs 25,92,624<\/p>\n<p>Total payable (in 15 years): Rs 61,90,624<\/p>\n<p>\u00a0<\/p>\n<p>If Khanna took the loan in December 2019, through 2020 (the first year of the loan tenure) he would be paying:<\/p>\n<p>Rs 1,29,522 as home loan principal<\/p>\n<p>Rs 2,83,319 as home loan interest<\/p>\n<p>\u00a0<\/p>\n<p>Under Section 80C, which offers rebate against specific investments, including home loan principal, Khanna can get Rs 1,29,522 from his income made tax-free (the upper limit under this Section is Rs 1.50 lakhs in a year).<\/p>\n<p>\u00a0<\/p>\n<p>Under Section 24(b), Khanna can claim Rs 2 lakhs as deduction against the interest paid.<\/p>\n<p>\u00a0<\/p>\n<p>Now, under Section 80EEA, Khanna can also claim the remaining Rs 83,319 as deduction from the overall limit of Rs 1.50 lakhs.<\/p>\n<p>\u00a0<\/p>\n<p>After applying all these deductions, here is the breakup of Khanna\u2019s total taxable income:<\/p>\n<p>\u00a0<\/p>\n<p>Rs 15 lakh \u2013 Rs 40,000 (Standard deduction)<\/p>\n<p>= Rs 14.60 lakh<\/p>\n<p>\u00a0<\/p>\n<p>Deduction under Section 80C: Rs 1,29,522<\/p>\n<p>Deduction under Section 24(b): Rs 2,00,000<\/p>\n<p>Deduction under Section 80EEA: Rs 83,319<\/p>\n<p><strong>Total deductions: Rs 4,12,841<\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong>Total taxable income: Rs 14,60,000 \u2013 Rs 4,12,841 = Rs 10,47,159<\/strong><\/p>\n<p>\u00a0<\/p>\n<p>Khanna still falls in the category of over Rs 10 lakh taxable income, so the highest rate at which his income is taxed remains 30%, but the amount to be taxed at 30% has come down significantly. Here is the split of his income for tax calculations:<\/p>\n<p>\u00a0<\/p>\n<p>Rs 2.5 lakhs (@0%) = 0<\/p>\n<p>Rs 2.5 lakhs (@5%) = Rs 12,500<\/p>\n<p>Rs 5 lakhs (@20%) = Rs 1,00,000<\/p>\n<p>Rs 47,159 (@30%) = Rs 14,148<\/p>\n<p>\u00a0<\/p>\n<p>Total tax: Rs 1,26,648<\/p>\n<p>+ cess at 4% = Rs 5,066<\/p>\n<p>\u00a0<\/p>\n<p><strong>Total tax outgo: Rs 1,31,714<\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong>Total savings as against the earlier outgo:<\/strong><\/p>\n<p>Rs 2,60,520 \u2013 Rs 1,31,714 = Rs 1,28,806<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<h2><span id=\"Can_I_claim_deduction_under_Section_80EEA_if_loan_was_taken_in_2015\"><strong>Can I claim deduction under Section 80EEA if loan was taken in 2015?<\/strong><\/span><\/h2>\n<p>Since the provision specifically mentions that the deduction will apply on only those loans that have been\/would be granted between April 1, 2019, and\u00a0 March 31 2021, people whose loans have been sanctioned prior to or after this period, will not be eligible to claim the additional rebate under Section 80EEA.<\/p>\n<p>\u00a0<\/p>\n<p><strong><em>See also: All about <span style=\"color: #0000ff;\">GST<\/span> on flat<\/em><\/strong><\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"80EEA_facts\"><strong>80EEA facts<\/strong><\/span><\/h2>\n<p>Even though the deduction under 80EEA may be available only on home loans sanctioned till March 2022, those who are eligible for the rebate can claim deductions throughout the term of their home loan repayment.<\/p>\n<p>Under the PMAY rules, a single earning member of a family is considered a separate household for tax calculation purposes. This also means that an unmarried buyer, who is financially independent, is a separate household and can thus claim tax deductions under Section 80EEA for his first property purchase.<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"You_may_also_like_to_read\"><strong>You may also like to read<\/strong><\/span><\/h2>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<h2><span id=\"FAQs_on_80EEA\"><strong>FAQs on 80EEA<\/strong><\/span><\/h2>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>When did Section 80EEA come into force?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tSection 80EEA was introduced in the Budget 2019. In the Budget 2021, its cover was increased up to March, 2022.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>What is the deduction limit under Section 80EEA?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tFirst-time home buyers can claim tax deduction of Rs 1.50 lakhs in a year against the home loan interest payment under this Section.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>Who is eligible for tax deductions under Section 80EEA?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tFirst-time home buyers can claim deductions under Section 80EEA, if: *The loan has been taken from a bank or housing finance company. *The stamp duty value of property is up to Rs 45 lakhs. *They are not claiming deductions under Section 80EE. \t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>What should be the value of the flat, to avail of the benefits under Section 80EEA?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tThe stamp duty value of the property should not exceed Rs 45 lakhs.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>Can I claim deductions under Section 80EE and Section 80EEA together?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tThe law clearly states that those claiming benefits under Section 80EE cannot claim rebate under Section 80EEA.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>Can I claim deductions under Section 80EEA for plot purchase?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tDeduction under Section 80EEA can only be claimed for purchase of housing units, including flats or apartments. The section is not applicable on the purchase of plots.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>Can I claim deduction of principal repayment on home loan under Section 80EEA?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tDeduction under Section 80EEA can only be claimed against home loan interest payment.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>Can I claim deduction of interest payment on electric vehicle loan under Section 80EEA?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tDeduction of interest payment on electric vehicle is allowed under Section 80EEB.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>Can I claim deduction under Sections 24 and Section 80EEA simultaneously?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tBuyers can claim deductions under both these sections and enhance their total non-taxable income to Rs 3.50 lakhs, if they meet the eligibility criterion. However, deductions under Section 80EEA can only be claimed after exhausting the limit of Rs 2 lakhs under Section 24(b).\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>For how many years is the deduction under Section 80EEA available?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tDeductions can be claimed throughout the loan repayment tenure.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>Can I claim deductions under Section 80EEA after I buy my second property?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tYes, deductions under the section are available on home loans that are taken when the tax payer had no property. Your future property ownership has no impact on this rebate.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>Can my wife and I both claim deduction under Section 80EEA?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tYes, if the property is registered in both names and if she is also a co-borrower in the home loan.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>Can I claim deductions under Section 80EEA if I take loan from family members\/friends?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tNo, the loan has to be borrowed from a bank or HFC to claim this benefit.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>What is stamp duty value of a property?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tThe value at which a property is registered in the government records is known as its stamp duty value.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>What is the definition of affordable homes?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tAccording to government-defined standards, affordable homes are units priced up to Rs 45 lakhs.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sc_fs_faq sc_card \">\n<div>\n<h3>What documents will I have to give to my company to claim tax deduction under Section 80EEA?<\/h3>\n<div>\n<p>\n\t\t\t\t\t\tThe borrower will have to submit the interest certificate issued by his bank, to claim the rebate.\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p>\u00a0<\/p>\n<div id=\"reaction_buttons_post44959\" class=\"reaction_buttons\">\n<p>Was this article useful?<\/p>\n<ul>\n<li class=\"reaction_button reaction_button_0\" onclick=\"reaction_buttons_increment_button_ajax('44959', '0');\">\n<p><span class=\"button_name\">\ud83d\ude03<\/span>\u00a0<span class=\"braces\">(<\/span><span class=\"count_number\">78<\/span><span class=\"braces\">)<\/span><\/p>\n<\/li>\n<li class=\"reaction_button reaction_button_1\" onclick=\"reaction_buttons_increment_button_ajax('44959', '1');\">\n<p><span class=\"button_name\">\ud83d\ude10<\/span>\u00a0<span class=\"braces\">(<\/span><span class=\"count_number\">3<\/span><span class=\"braces\">)<\/span><\/p>\n<\/li>\n<li class=\"reaction_button reaction_button_2\" onclick=\"reaction_buttons_increment_button_ajax('44959', '2');\">\n<p><span class=\"button_name\">\ud83d\ude14<\/span>\u00a0<span class=\"braces\">(<\/span><span class=\"count_number\">7<\/span><span class=\"braces\">)<\/span><\/p>\n<\/li>\n<\/ul>\n<\/div>\n<p><!-- AI CONTENT END 1 -->\n\t<\/div>\n<p><script  data-wpspdn-after=\"REORDER\" type=\"javascript\/blocked\">\n    (function (w, d) {\n      var s = d.createElement(\"script\");\n      s.src = \"https:\/\/cdn.adpushup.com\/39057\/adpushup.js\";\n      s.type = \"text\/javascript\";\n      s.async = true;\n      (\n        d.getElementsByTagName(\"head\")[0] || d.getElementsByTagName(\"body\")[0]\n      ).appendChild(s);\n    })(window, document);\n    !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n    n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;\n    n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;\n    t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,\n    document,'script','https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n    fbq('init', '860197050685496');\n    fbq('track', \"PageView\");<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Under Section 80EEA, first-time home buyers investing in affordable homes in India enjoy additional income tax deductions on home loan interest payment. However, the benefits of Section 80EEA are applicable only if they buy an affordable property (worth Rs 45 lakh) with the help of a home loans. Section 80EEA of the Income Tax Act [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":19035,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[5],"tags":[612,615,610,613,611,614],"class_list":["post-19034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-applicability","tag-benefit","tag-eligibility","tag-period","tag-rebate","tag-total"],"_links":{"self":[{"href":"https:\/\/magicsheds.in\/index.php\/wp-json\/wp\/v2\/posts\/19034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magicsheds.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magicsheds.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magicsheds.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/magicsheds.in\/index.php\/wp-json\/wp\/v2\/comments?post=19034"}],"version-history":[{"count":1,"href":"https:\/\/magicsheds.in\/index.php\/wp-json\/wp\/v2\/posts\/19034\/revisions"}],"predecessor-version":[{"id":19349,"href":"https:\/\/magicsheds.in\/index.php\/wp-json\/wp\/v2\/posts\/19034\/revisions\/19349"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/magicsheds.in\/index.php\/wp-json\/wp\/v2\/media\/19035"}],"wp:attachment":[{"href":"https:\/\/magicsheds.in\/index.php\/wp-json\/wp\/v2\/media?parent=19034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magicsheds.in\/index.php\/wp-json\/wp\/v2\/categories?post=19034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magicsheds.in\/index.php\/wp-json\/wp\/v2\/tags?post=19034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}