Section 80EE:Deduction for interest on loan taken for SOP

Section 80EE:

(i) Eligible assessee:

Section 80EE provides additional deduction in respect of interest on loan taken by an individual for acquisition of residential house property from any financial institution.

(ii) Conditions:

1. Value of house should be less than or equal to Rs.50 lakhs.
2. Loan should be sanctioned during the P.Y.2016-17.
3. Loan sanctioned should be less than or equal to Rs.35 lakhs.
4. The assessee should not own any residential house on the date of sanction of loan.

(iii) Period of benefit:

The benefit of deduction under this section would be available till the repayment of loan continues.

(iv) Quantum of deduction:

The maximum deduction allowable is Rs.50,000. The deduction of upto  Rs.50,000 under section 80EE is over and above the deduction of upto Rs.2,00,000 available under section 24 for interest paid in respect of loan borrowed for acquisition of a self-occupied property.

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