Interest On House Loan Section

Under the provisions of the section home buyers can save an additional rs 1 50 lakhs per year towards the interest paid on home loans over and above the rs 2 lakhs that they already save under section 24 b.

Interest on house loan section. Interest paid on housing loan is allowed as a deduction to the extent of rs 2 lakhs in respect of self occupied property. Section 80ee allows income tax benefits on the interest portion of the house property loan availed from any financial institution. The limit under this section is rs.

The income tax benefits on interest on housing loan are covered under section 24 and section 80ee of the income tax act. The tax benefits under section 80ee are applicable only for first time home buyers whereas tax benefits under section 24 are available for everyone. You can continue to claim this deduction until you have fully repaid the loan.

This deduction can only be claimed if the owner or his or her family members reside in the house property. Two new sections 80ee and 80eea have been introduced in the act one by finance act 2016 and the other by way of finance act 2019 which deals with the deduction of interest over and above section 24 b. Deduction can be claimed for interest on home loan under section 24 of the income tax act 1961.

The entire interest shall be waived off as a deduction in case the house is on rent. As per section 24b interest paid on a home loan shall be allowed as a deduction at the time of computing income from house property.