Tax Planning: If you are also planning to buy a house, then this information can be of use to you. A big discount on home loan will not be available from April 1, 2022. Under Section 80EEA of the Income Tax Act, 1960, an additional tax exemption of Rs 1.5 lakh was available on the home loan. You have to keep in mind that this discount is only for affordable housing (up to Rs 45 lakhs).
You will not get this additional exemption of Rs 1.5 lakh on home loan from April 1, because the government has not extended this tax exemption period. In Budget 2022, the government did not announce to extend the deadline for this tax exemption. Because of this, the benefit of this exemption on home loan will not be available in the next financial year i.e. 2022-23. This tax exemption on home loan was available from FY 2019 to 2022.
what benefit will continue to be
Two major deductions will continue to be available on home loan as before. First, the deduction under section 24(b) up to Rs 2 lakh will continue to be available. It is available on the interest of the home loan. Second, the deduction up to Rs 1.5 lakh under section 80C will also continue to be available. This deduction is available on the principal amount of the home loan.
How much profit was being received now
At present, a total deduction of up to Rs 3.5 lakh was available on home loan interest. Deduction up to Rs 2 lakh is available under section 24(b). Apart from this, an additional deduction of up to Rs 1.5 lakh was available on interest under section 80EEA. In this way, on buying an affordable housing, you would get a deduction of Rs 3.5 lakh on both of them together.
There were certain conditions for deduction up to Rs 1.5 lakh available under section 24(B). First, the home loan should be sanctioned between April 1, 2019, and March 31, 2022. Second, the stamp duty value of the house should not exceed Rs 45 lakh. Third, the person buying the house should not have any other house property in his name.
Abhishek Soni, CEO, ITR filing website tax2win.in said, “A person can claim deduction under section 80EEA on home loan on or before March 31, 2022.” “Once there is a home loan sanction, one can claim this deduction till the entire home loan is repaid,” he told Economic Times.
now you have a chance
Therefore, if you want to avail additional deduction of Rs 1.5 lakh under section 80EEO, you will have to get your home loan sanctioned from the bank or home finance company before March 31. Mumbai-based investment and tax expert Balwant Jain told Business Standard, “If you want to buy a house that comes under section 80EEA, you need to get home loan sanctioned before the deadline. You can do the disbursement later.”