In FY23, no additional tax relief of Rs 1.5 lakh for home loans for buyers of affordable homes


HIGHLIGHTS

  • Section 80EEA was introduced in the 2019 Union Budget to give a boost to the affordable housing segment. Under this provision, first-time home buyers were allowed to claim a tax deduction of up to Rs 1.5 lakh on interest paid on affordable housing loans.
  • As per Section 24(B) of the IT Act, you can claim a tax deduction of up to Rs 2 lakh on the interest paid on the home loan. This deduction is applicable in the case of independent or vacant dwellings.

Finally, the government has scrapped the grant of additional tax relief of Rs 1.5 lakh to homebuyers, which had been available since 2019. It was introduced by the Center for those buying their first home in the housing segment. affordable housing.
The additional tax deduction available for affordable housing under Section 80EEA of the Income Tax Act 1961 has been removed with effect from 1 April 2022.

In the 2022-23 Union budget, the government announced its decision to remove this tax relief. Under Section 80EEA, a person was entitled to claim an additional deduction of Rs 1.5 lakh in addition to the deduction of Rs 2 lakh available under Section 24 of the Income Tax Act , on interest paid on a home loan under the affordable housing segment.

So, if someone was availed of an affordable housing loan before March 31, they could have claimed a maximum deduction of Rs 3.5 lakh for interest paid, using Section 24 and Section 80EEA of computer law.

Related News

ITR filing Government notifies ITR forms for 2021-22 seeks information on overseas pension ac

ITR Filing: Government Notifies ITR Forms for 2021-22; looking for info on retirement abroad a/c

Crypto tax Understand how virtual digital assets will be taxed from April 1

Crypto tax: understanding how virtual digital assets will be taxed from April 1

So, if we put together all the tax relief on a home loan including principal amount and interest, the total benefit of a home loan comes to Rs 5 lakh.

That was the break: an available deduction of up to Rs 1.5 lakh on repayment of principal under Section 80C; up to Rs 2 lakh on interest payment under Section 24(B), and an additional tax deduction of up to Rs 1.5 lakh (which has been removed) for first-time home buyers on the component interest on the home loan under Section 80EEA.

This deduction under 80 EEA was in addition to the tax deduction available under Section 24(B).

As per Section 80C of the Income Tax Act, you can claim a deduction of up to Rs 1.5 lakh on the amount paid as the principal repayment of the home loan. You can also list the expenses incurred for payment of stamp duty and registration fee for availing the benefits of Section 80C, which has a deduction limit of up to Rs 1.5 lakh.

As per Section 24(B) of the IT Act, you can claim a tax deduction of up to Rs 2 lakh on the interest paid on the home loan. This deduction is applicable in the case of independent or vacant dwellings.

Section 80EEA was introduced in the 2019 Union Budget to give a boost to the affordable housing segment. Under this provision, first-time home buyers were allowed to claim a tax deduction of up to Rs 1.5 lakh on interest paid on affordable housing loans.

During its first term which began in 2014, the NDA government launched its flagship program “Home for All by 2022”. With the same objective, he also announced the launch of the PMAY program to encourage the purchase of housing thanks to the subsidies offered by the Centre.

Previous Salter Brothers Agreement, Accor; Centennial Bank Loan for Hilton Project – HOTELSMag.com
Next HDFC Bank News: Hdfc Bank Loan Portfolio Grows 21% to ₹13.7 Crore | India Business News