- Wealth PMS (50L+)
The existing provisions of section 80EE provide a deduction of up to 1 lakh rupees in respect of interest paid on loan by an individual for acquisition of a residential house property.
As though the deduction claimed was too low, the finance minister has provided a few more freebies to the Real Estate Sector for an individual investment.
With the Government’s goal of ‘housing for all‘, an additional deduction up to Rs. 50,000/- will be provided for to incentivise first-home buyers availing home loans by providing additional deduction in respect of interest on loan. But remember that this cannot be availed for every piece of home.
The condition is that the value of the house property should be less than Rs. 50 lakhs and the loan amount should not exceed Rs. 35 lakhs (applicable for the period 1 April, 2016 to 31st March, 2017). The benefit of this deduction will be provided till the repayment of loan continues.
In addition to this, if your property was not delivered to you after 3 years, your tax deduction would not have applied, but now that period has been extended to 5 years.
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