As per the budget 2019, an additional Income Tax Benefit has been provided by introducing new section 80EEA of the Income Tax Act for boosting housing for all and affordable housing scheme.
With the introduction of Section 80EEA, an individual taxpayer will now get an additional deduction of Rs 1.5 lakh, which is over and above the limit of Rs 2 lakh in respect of self occupied property under section 24 of the Income Tax Act.
Conditions for availing the benefit :
- Additional deduction of Rs 1.5 lakh would be available for interest paid on loans taken upto 31st March 2020.
- Purchasing an affordable house upto Rs 45 lakhs or less in value.
- First time home owners.
Therefore, a person purchasing an affordable house now will get enhanced interest deduction up to Rs 3.5 lakh.
And as said by our Finance Minister Nirmala Sitharaman “This will translate in to benefit of Rs.7 lakh to the middle-class first time home owners over a period of 15 years.”
Author : Shalini Passi (Click Here to View Profile)
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