Why is 80EE introduced?

Why is 80EE introduced?

Section 80EE and Section 80EEA Benefits under section 80EEA was introduced in the union budget 2019 to extend the tax benefits of the interest deduction. A taxpayer can claim a deduction of up to Rs 1,50,000 in respect of interest paid on a home loan taken from a financial institution.

What is Section 80EE of Income Tax Act?

Section 80EE allows income tax benefits on the interest portion of the residential house property loan availed from any financial institution. You can claim a deduction of up to Rs. 50,000 per financial year as per this section. You can continue to claim this deduction until you have fully repaid the loan.

What is the difference between 80EE and section 24?

To do so, the individual will first need to exhaust the limit under Section 24 and then claim the additional benefit under Section 80EE. Therefore, the deduction under Section 80EE is in addition to the limit of Rs. 2,00,000 as under Section 24.

What is difference between 80EE and 80EEA?

Section 80EEA has been introduced to further extend the benefits allowed under Section 80EE for low-cost housing. Earlier, Section 80EE had been amended from time to time to allow a deduction for interest paid on housing loan for the FY 2013-14, FY 2014-15, and FY 2016-17.

What is the difference between 80EE and 80 EEA?

The applicability of 80EEA is on home loans taken between April 1, 2019 and March 31, 2022….Difference between 80EE and 80EEA.

Can I claim both 80EE and 80EEA?

Only individual taxpayers can claim deduction under Section 80EE on properties purchased either singly or jointly. If an individual has bought a property jointly with his or her spouse and they are both paying the installments of the loan, then the two can individually claim this deduction.