The government is giving an opportunity to the income tax payers engaged in preparations to save income tax for the financial year 2021-22 to get an additional exemption of 1.5 lakhs till 31 March. This benefit will be given to the home loan borrowers to buy an affordable house.
In fact, in Budget 2021, the government had extended the deadline for getting tax exemption under section 80EEA of the Income Tax Act by one more year. This limit expires on March 31, 2022. Earlier, taxpayers who bought affordable houses would be given an additional tax exemption of Rs 1.5 lakh on home loans. At present, the government gives tax exemption of Rs 3.5 lakh on all types of home loans under section 24B and section 80C of income tax. If the tax exemption of 80EEA is also added to this, then a total relief of Rs 5 lakh will be available. A rebate of Rs 2 lakh per annum is being given on the interest of the home loan under section 24B and Rs 1.5 lakh on the principal amount of the loan under 80C. The special thing is that you will not even have to wait till the possession of the house for additional tax exemption.
This condition must be fulfilled to get the exemption
It is not enough for the taxpayer to take a home loan to get an additional deduction of 1.5 lakh under 80EEA, but the value of the house purchased must also be less than Rs 45 lakh. Also, the taxpayer should not already have any other property. This house cannot be sold for five years from the date of purchase. If this happens, then all this tax exemption received in the year of sale of the house will be added.
The law was made in 2019, the date may increase now
In the budget 2019, the government had added a new section of 80EEA in the Income Tax Act. Then it was said that only those people will be able to take advantage of this, who have taken a home loan between April 2019 and March 2020. After this, in Budget 2020, the government extended its deadline to March 2021. Then in Budget 2021, this relief was extended for one more year. It is estimated that the deadline may once again increase in the coming budget next month.