Sec.80EEA – Additional Benefit for Purchase of Affordable House

• July 10, 2019
• By, CA.Vishranth.B.L

Following conditions to be satisfied for claiming the Sec.80EEA benefit;

• The home loan is taken from approved financial institutions between April 1, 2019 to March 31, 2020
• The stamp value of house is less than Rs 45 Lakhs
• The buyer should not have any other house in his name at the time of loan sanction.



Eligible amount of deduction: Maximum of Rs. 1.5 Lakhs on Interest on Housing Loan

Please note that this deduction is in excess of Sec.24 deduction of Rs.2 Lakhs.

Affordable House means;
• Houses with area less than 60 sq. mt. in metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region)
• Houses with area less than 90 sq. mt. in all cities other than metropolitan cities
• The stamp value of house should be less than Rs 45 Lakhs

Reference:

• Finance Act, 2019