All about Section 80EEA-Home loan interest payment

The government has now extended the hobby deduction permitted for low-cost home loans obtained between 1 April 2019 and 31 March 2022, to achieve the goal of. As a result, commencing in AY 2020-21, a new Section 80EEA has been established to allow for a hobby deduction.

The previous provision of Section 80EE allowed a deduction of up to Rs 50,000 for interest paid by using first-time domestic consumers for loans sanctioned from a financial institution between April 1, 2016, and March 31, 2017.The government has extended the benefit for FY 2019-20 to maintain the benefit and provide the real estate sector with a boost.

Individuals will benefit the most from the deduction in this section. This tax break isn’t always available to another person. As a result, if you’re a HUF, AOP, partnership company, corporation, or another type of taxpayer, you won’t be able to claim any benefits under this section.Section 80EEA allows for a deduction of up to Rs 1,50,000 for hobby expenses. This deduction is in addition to the Rs 2 lakh deduction for hobby bills available under Section 24(b) of the Income Tax Act.

Similar to Section 80EE, to claim a deduction under Section 80EEA, you must no longer possess any other home assets at the time the mortgage is approved.

The conditions for claiming the deduction are as follows:

• For the purchase of residential residence assets, a housing mortgage must be obtained from a financial institution or a housing financing business.
• The loan must be approved between the 1st of April 2019 and the 31st of March 2022.
• The dwelling assets must have a stamp obligation price of Rs 45 lakhs or less.
• The character taxpayer is no longer allowed to claim a deduction under the current Section 80EE.
• The taxpayer must be a first-time purchase in the United States. As of the date of the mortgage’s sanction, the taxpayer must no longer possess any residential residence assets.
• Conditions about the carpet area of the home’s assets. Within the memoranda, these scenarios were separate.

The section also makes no mention of whether or not the residence must be self-occupied to claim the deduction. As a result, debtors who live in rental residences can also claim this deduction. Furthermore, the deduction is most effectively claimed when two or more persons purchase a home together or separately. If someone owns a home with a partner and they both pay the loan installments, then each of them can claim this deduction. They must, however, meet all of the conditions set forth.

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