Income-tax deduction for Homebuyers?
This special exemption under Section 80EE of the Income-Tax Act, 1961, will lapse after March 31 and will only be applicable if the salaried income-tax assessee does not own any residential property on the date of sanction of the loan.
This deduction will be in addition to the tax rebate on interest payment of home loan under Section 24 the Income-Tax Act up to R1.5 lakh and up to R1 lakh paid as principal repayment under Section 80C every year. Moreover, if the interest payable by the assessee during the year is less than R1 lakh, the unclaimed amount will be allowed to be claimed in the next financial year. For example, if the interest payable in financial year 2013-14 (assessment year 2014-15) is R60,000, then the tax rebate on the remaining R40,000 can be claimed in financial 2014-15 (assessment year 2015-16).
The newly inserted Section 80EE will be applicable only for assessment year 2014-15. The finance minister, in his interim budget for 2014-15, did not extend the this provision. To avail the deduction under Section 80EE, the assessee will have to produce a certificate from the financial institution from where