For those who are planning to
buy a home this year, tax exemption on home loan interest payment has been
increased by ₹ 1 lakh in the recent budget. This
is in addition to the existing exemption of ₹ 1.5 lakhs. In total, this
year you can claim a deduction of ₹ 2.5 lakh for interest paid on your home
loan. Along with this you can enjoy the exemption of ₹ 1 lakh on payment
of principal part of home loan as usual.
But, this exemption is allowed only under the
following conditions.
·
The increase in exemption
limit is only for this year alone.
·
This increase in exemption
limit does not apply to existing home loan takers. It is only for the loan
sanctioned by the financial institutions during 1st April 2013 to 31st March
2014.
·
The loan is taken for your
first home i.e., you as a taxpayer do not already own a residential property on
that date.
·
The value of the property
does not exceed ₹ 40 lakhs.
·
The loan amount does not
exceed ₹ 25 lakh.
In Webpay, Section 80 EE: A section 80EE inserted by the Finance Minister in the 2013 Union Budget in order to promote affordable housing to the first time home loan buyers only by allowing an additional deduction of Rs 1 Lakh under section 80EE.
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