On Home Loan Payment, Indian Government had given a big benefit by providing 1.5 lac tax benefit. So if you are looking to buy a house for yourself than go ahead. If you want to buy a new house, then there is good news for you. The Indian government is giving you an additional tax benefit of up to Rs 1.5 lac.
Home Loan Payment: Government has brought a new section in Budget 2019,
Section 80EEA.Under section 80EEA, you will get an additional tax benefit of Rs 1.5 lakh on the payment of interest on the home loan. Note that this is in addition to the tax benefit of 2 lakhs (home loan interest payment) available under section 24. But there are certain conditions for availing tax benefits under 80EEA.
Terms for tax benefit under Section 80EEA?
- You get this tax benefit on the payment of home loan interest.
- Your home loan was approved between 1 April 2019 and March 31 2020.
- The value of your house (Stamp Duty Value, Stamp Duty Value) should be up to 45 lakh rupees.
- There should be no house in your name while taking a loan.
You can see that this new tax benefit is only for the first time buyers.
You will not get this tax benefit only in FY2020. Will keep getting ahead. Only you fulfill the above conditions.
There is a tax benefit of Rs 2 lakh under section 24 on the payment of interest on home loan. This new tax benefit (section 80EEA) is an additional tax benefit.
If you fulfill all the conditions, then you can get a tax benefit of up to Rs 3.5 lakh on the payment of interest in total.
What is the difference between the tax benefits of section 24 and section 80EEA?
- Both tax benefits are available on the home loan interest payment.
- A tax benefit of up to Rs 2 lakh is available under section 24. You get a tax benefit of up to Rs 1.5 lakh under section 80EEA.
- Section 24 is available on all home loans. Only a few home loans are eligible under section 80EEA. Details of all the conditions are given above.
- You can avail benefits under section 24 only if the construction of your house is completed or you have got possession. There is no tax benefit for the property under construction. However, you can take benefit of payment of interest made at the time of construction in 5 equal installments (after completion of construction). There is no condition of completion for the tax benefit of section 80EEA.