Buying a home with a mortgage has some tax advantages in the form of a deduction of interest paid on the mortgage and repayment of the principal on the mortgage. In addition to this, starting from the fiscal year 2021-22, or from the assessment year 2022-23, you can also save on taxes through an additional deduction of Rs 1.50.000 / -.
This deduction runs from this evaluation year (I-T return must be filed this year). It can be claimed for the term of the mortgage loan, provided the full deduction under this provision does not exceed Rs 1.50,000 / -.
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This deduction is not available to all homebuyers, only to those who purchase affordable housing. This is an additional deduction in addition to the existing home-ownership income deduction. This deduction should not be claimed on home-ownership- income, but on gross gross income itself.
What is u / s 80EEA deduction?
• This additional deduction is available in connection with the repayment of interest on a home loan borrowed from a financial institution and banks.
• The home-ownership interest deduction is available for loans borrowed from friends and family, but not for this deduction. In this case, the loan must be borrowed from a financial institution or bank.
• A similar deduction is also available at Rs 50,000 / -80EE under the Income Tax Act but is only available if you took out a mortgage in the 2016-17 financial year. If you have taken advantage of u / s 80EE deduction, or if you are eligible to take advantage of this deduction, you are not eligible to request the deduction of Rs 1.50.000 / - u / s80EEA.
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Conditions for obtaining a
deduction u / s 80EEA
• This deduction is only available
for individuals and NOT for HUF or companies.
• The price of the house purchased
under the contract must not exceed 45.00.000 rupees / -
• The house must be financed with a
mortgage
• This mortgage loan must be
borrowed in the 2019-20 or 2020-21 financial year (the date of the sales
contract does not matter)
• As of the date this mortgage is
approved, you must not own any other residential buildings.
• This deduction can be requested
in the fiscal year 2020-2021 and in the following fiscal years.
• The amount for which this deduction is requested cannot be claimed as a deduction from any other section, eg. on a mortgage loan if you have a total interest payment of Rs 200,000 / - and have claimed the same amount as a home-ownership income deduction under clause 24 of the Income Tax Act, again, not you can request the same amount as u / s 80EEA deduction. However, if you have an interest payment of Rs. claimed as a deduction u / s 80EEA.
Income from home-ownership and
deduction U / s 80EEA
• This deduction should be deducted
from total gross income, not home-ownership income.
• The u / s 24 interest deduction
must be deducted from home-ownership income.
• If the full amount of interest
paid is not used when requesting a deduction under section 24 of the law, you
can claim the unused portion under section 80EEA.
• If you own a house in co-ownership and both co-owners have taken out a mortgage, both co-owners can independently request a deduction up to a limit of Rs 1.50.000 / -
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4) Automated
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5) Automated
Income Tax Revised Form 16 Part A&B for the F.Y.2022-23
6) Automated
Income Tax Revised Form 16 Part B for the F.Y.2022-23
