July 7, 2023

Section 80EE of the Income Tax Act with Auto Calculate Income Tax Preparation Software in Excel for the Non-Govt Employees for the F.Y.2023-24 and A.Y.2024-25 as per Budget 2023

 Section 80EE of the Income Tax Act | Section 80EE is a tax exemption provided under the Income Tax

Act which is Rs. 50,000 a year with interest paid towards the purchase of your first home.

 

Section 80EE

Budget 2023 under Section 80EE:

 

When calculating the capital gain on the sale of a residential property, the owner’s cost of the property does not include interest on the mortgage loan. This is the total amount claimed as deductions during the holding period of the property.

The provisions of section 80EE

 

Here are the highlights of Section 80EE of the Income Tax Act, of 1961:

 

Features

Details

Eligibility

Only first-time homebuyers

Exclusions

HUF/ Company/ Factory building

Property Ownership

On the date of loan sanctioning, the taxpayer should not own any other house property except on which the home loan is taken The taxpayer should own the residential house property on which the loan is taken

Employment Status

Available to both salaried and self-employed individuals

Maximum Deduction

Rs. 50,000

Loan Amount

The loan amount should not exceed Rs. 35 lakh

Additional Deduction

Deduction u/ Section 80EE is in addition to the deduction of Rs. 2 lakhs available under Section 24 of the IT Act

Loan Amount

Deduction only on loans taken to buy a residential house property

Property Value

The value of the property should not exceed Rs. 50 lakh

Loan Issuing Authority

Financial Institutions Housing Finance Company

Tax Claim for Joint House Ownership

If both owners pay joint ownership of the house and loan installments: Both the joint owners can claim a deduction under Section 80EE

 

Income Tax relief U/s 80EE, section 80C and section 24(b)

Provided under u/Sec 80EE, Sec 80C, Sec 24 of the Income Tax Act.

 

Section 80EE

Section 80C

Section 24

Rs. 50,000 on home loan interest payments for first-time home buyers, this is in addition to discounts of up to Rs. 2 Lakh U/Sec 24 Hence, the exemption limit u/Sec 24 should first be deleted before claiming exemption under Section 80EE,

Rs. 1.5 Lakh in investments in special tax saving instruments like Public Provident Fund (PPF), Equity Linked Savings Schemes (ELSS), and National Savings Certificate (NSC).

Credit is Rs. 2 lakh on payment of interest on housing loan taken for purchase, construction, or renovation of residential property, the personal property only

 

 

Exemptions under section 80EE, section 80C and section 24

 

Particulars

Deductions Available On

Tax Deductions (in Rs.)

Self-Occupied  Residential Property

Rental Residential Property

Section 24

Interest on Home Loan

Rs. 2 Lakhs

No Limit

Section 80C

Principal Home Loan Amount

Rs. 1.5 Lakhs

Rs. 1.5 Lakhs

Section 80EE

Interest on Home Loan

Rs. 50,000

Rs. 50,000

 

Section 80EEA

 

Section 80EEA of the Income Tax Act provides that an additional fee of up to Rs. 1.5 lakh for interest payable on home loans taken for the purchase of a first home.

 

Contents of Section 80EEA:

 

• A section has been included in the Union Budget 2019-20 to promote the affordable housing sector.

• This will encourage first-time buyers to buy their first home.

The taxpayer should not be able to use the u/80EE section.

• Exemption is available for loans sanctioned from April 1, 2019, to March 31, 2022.

• Assets worth Rs. 45 Lakh.

Tax deductions should only be claimed for the purchase of your first home.

Download Excel All in One Automated Income Tax Preparation Software for Non-Government (Private) Employees for Financial Year 2023-24 and Assessment Year 2024-25 U/s 115BAC 

Section 80EE of the Income Tax Act

Section 80EE of the Income Tax Act

Section 80EE of the Income Tax Act
Form 12 BA

Features of this Excel utility:-

 

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8) Automatic Income Tax Form 16 Part A&B revised for the financial year 2023-24

 

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