Interest on Housing Loan now eligible under New U/s. 80EE: Union Budget 2016

homeloanBy 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.

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