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Tax Payers who are eagerly waiting for Budget,2014 to come, are expecting changes to be made in the provisions of Section 80EE. Section 80EE provides for additional deduction of up to Rs. 1 lakh under Chapter VIA in respect of interest on housing loan sanctioned by a bank or housing finance company during the period between 1.4.2013 and 31.3.2014 for acquisition of residential house property. Assessee can take deduction u/s 80EE on interest payable on home loan upto 1 Lakh in A.Y.2014-15. It can claim deduction in two assessments year. Means if whole amount of interest payable upto 1 lakh is not claim as deduction in A.Y.2014-15 then remaining balance amount upto 1 lakh can claim in A.Y.2015-16.Total deduction under this section shall not be more than 1 lakh. 
It may be noted that deduction under section 80EE is an additional deduction, over and above the deduction allowable under section 24. Therefore, only if the total interest exceeds Rs.1,50,000, the benefit under section 80EE itself would be available. If the interest payable is less than Rs.1,00,000, as required in this sub-section, no benefit under section 80EE would be available even during the P.Y.2013-14, since the entire interest would be deductible under section 24 itself. Therefore, ideally, the benefit under section 80EE may be extended to interest on the loan taken for the first house property acquired or constructed, irrespective of the whether the housing loan is sanctioned before or after 1.4.2013. In any case, the deduction of Rs.1,50,000 in respect of self-occupied property was introduced fifteen years back and keeping in mind the inflationary conditions, the additional deduction of Rs.1,00,000 should be extended in respect of all loans, albeit for the first house property. Further, instead of providing the same as a deduction under Chapter VIA only for A.Y.2014-15 and A.Y.2015-16, the same may be provided by way of insertion of another proviso to section 24(b) for the sake of consistency. ITR filing for F/Y 2013-14 has started. Please click here to view the ITR filing page
Higher deduction for home loan interest expected from Budget,2014
Direct Taxes (including International Taxation) | By ALOK PATNIA | Last updated on Oct 5, 2017
Tax Payers who are eagerly waiting for Budget,2014 to come, are expecting changes to be made in the provisions of Section 80EE. Section 80EE provides for additional deduction of up to Rs. 1 lakh under Chapter VIA in respect of interest on housing loan sanctioned by a bank or housing finance company during the period between 1.4.2013 and 31.3.2014 for acquisition of residential house property. Assessee can take deduction u/s 80EE on interest payable on home loan upto 1 Lakh in A.Y.2014-15. It can claim deduction in two assessments year. Means if whole amount of interest payable upto 1 lakh is not claim as deduction in A.Y.2014-15 then remaining balance amount upto 1 lakh can claim in A.Y.2015-16.Total deduction under this section shall not be more than 1 lakh. It may be noted that deduction under section 80EE is an additional deduction, over and above the deduction allowable under section 24. Therefore, only if the total interest exceeds Rs.1,50,000, the benefit under section 80EE itself would be available. If the interest payable is less than Rs.1,00,000, as required in this sub-section, no benefit under section 80EE would be available even during the P.Y.2013-14, since the entire interest would be deductible under section 24 itself. Therefore, ideally, the benefit under section 80EE may be extended to interest on the loan taken for the first house property acquired or constructed, irrespective of the whether the housing loan is sanctioned before or after 1.4.2013. In any case, the deduction of Rs.1,50,000 in respect of self-occupied property was introduced fifteen years back and keeping in mind the inflationary conditions, the additional deduction of Rs.1,00,000 should be extended in respect of all loans, albeit for the first house property. Further, instead of providing the same as a deduction under Chapter VIA only for A.Y.2014-15 and A.Y.2015-16, the same may be provided by way of insertion of another proviso to section 24(b) for the sake of consistency. ITR filing for F/Y 2013-14 has started. Please click here to view the ITR filing page