There are several tax savings that come when you buy a house. Section 80EE is one of them. Section 80EE of the Income Tax Act provides a maximum deduction of Rs 1,00,000 (claimed in all years together). This Deduction is allowed from your Total Income towards Interest that you pay on Home Loan provided certain conditions are met.
Are you eligible to claim this deduction in Financial Year 2014-15? lets find out.
Here are the conditions you need to meet to claim this deduction in financial year 2014-15 –
- This is the first house owned by you. As on the date of the sanction of loan you don’t own any other house.
- Loan for this house was sanctioned between 01.04.2013 and 31.03.2014
- Value of the house is Rs 40lakhs or less
- Amount of Loan taken is Rs 25lakhs or less
- Loan has been sanctioned by a financial institution or a housing finance company
- You have not exhausted the maximum deduction of Rs 1,00,000 under Section 80EE in your Income Tax Return for financial year 2013-14. Let’s understand it by way on an example – (assuming you have met the remaining conditions listed above)
|Scenarios||Interest on Home Loan||Deduction claimed||Interest on Home Loan||Deduction claimed||Total Deduction claimed.|
|FY 2013-14||FY 2013-14||FY 2014-15||FY 2014-15|
Important to note : If you are eligible for this deduction and don’t claim it in FY 2013-14 and/or FY 2014-15 – unfortunately you cannot claim it in any other years, so don’t miss it!
Do you have any questions or need expert assistance, write to us firstname.lastname@example.org and we will be happy to assist you!