Compute the additional ₹1.5 Lakh tax deduction on home loan interest for first-time buyers of affordable residential property over and above Section 24(b).
Must not exceed ₹45,00,000.
Full deduction utilized across Section 24(b) and Section 80EEA.
Section 80EEA was introduced by the Government of India to encourage affordable housing under the "Housing for All" initiative, providing an additional tax deduction of up to ₹1,50,000 per financial year on home loan interest to eligible first-time homebuyers.
The taxpayer first exhausts the ₹2,00,000 interest deduction limit under Section 24(b) against income from house property. Any remaining interest paid during the year can then be claimed under Section 80EEA up to an additional ₹1,50,000, creating an aggregate tax shield of ₹3,50,000 per year.
| Section | Max Deduction | Property Value Limit | Loan Sanction Window |
|---|---|---|---|
| Section 24(b) | ₹2,00,000 | No Limit | Any financial year |
| Section 80EEA | ₹1,50,000 (Additional) | Stamp Value ≤ ₹45 Lakhs | 01-Apr-2019 to 31-Mar-2022 |
| Section 80EE | ₹50,000 (Additional) | Property ≤ ₹50L / Loan ≤ ₹35L | 01-Apr-2016 to 31-Mar-2017 |
No. Section 80EEA was available only for housing loans sanctioned between April 1, 2019 and March 31, 2022. For loans sanctioned later, only Section 24(b) deduction up to ₹2 Lakhs is available.
Yes. If both spouses are co-owners and co-borrowers, both can individually claim ₹2 Lakh under Section 24(b) and ₹1.5 Lakh under Section 80EEA, provided they meet the eligibility criteria.
No. Chapter VI-A deductions under Section 80EEA are not allowed under the New Tax Regime (Section 115BAC).