Additional 1.5 lakh Exemption of Interest Payment is no Longer Available.


 CONTACT FOR EXPERT ADVICE ON TAXATION MATTERS.

http://www.karsaathi.in/

Contact: 7838639095 (WhatsApps No.)

WITHDRAWAL OF TAX EXEMPTION U/S 80EEA FROM 01/04/2022

 Under Section 80EEA, first-time homebuyers in India enjoy additional deductions on income tax. However, the benefits of 80EEA are applicable only if they buy an affordable property with the help of home loans.

 80EEA of the income tax act enables home buyers to make up to Rs 1.50 lakh of their income in a year tax-free. Offered over and above the benefits enjoyed by other categories of buyers, the benefits to first-time home buyers in India are offered under Section 80EE and Section 80EEA.

 The 80EEA deduction is over and above the Rs 2 lakh deduction limit allowed under Section 24 (b). However, the 80EEA deduction is linked to the cost of the house and is extended on the purchase of housing units worth up to Rs 45 lakhs. 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 sq ft or 60 sq meters, for the owner to claim the benefit under Section 80E For units in any other city, the carpet area has been limited to 968 sq ft or 90 sq meters.

 For a first-time buyer, then, the annual tax rebate against home loan interest payment thus comes to Rs 3.50 lakhs.

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