By Accommodation Times Research Bureau
Deduction in respect of Interest on Loan –Sec. 80EE
This is a new section introduced in substitution of the existing section 80EE.
The section allows deduction of an amount not exceeding Rs.50,000/- in respect of
interest payable on loan taken by the assessee from any financial institution for the
purpose of acquisition of residential property.
It is necessary that the loan is sanctioned during the period from 01.04.2016 to
31.03.2017 and the amount of loan does not exceed Rs.35,00,000/- for the property
valuing not exceeding Rs.50,00,000/-. It is also necessary that the assessee does not own
any residential property on the date the loan is sanctioned.
The deduction is allowable for and from the assessment year 2017 -18.