Deduction on Home Loan Interest [Sec.80EE] (A.Y.2017-18),Plus Automated Arrears Relief Calculator from F.Y.2000-01 to 2017-18

The section (80EE) deals with offering additional deduction to the taxpayers by allowing them to make adjustments for an interest of home loan or any other form of loan taken with an intent for owning residential house property.

Here we want to clear about one thing that doesn't confuse over repayment of a home loan and interest on home loan.

• Download Automatic Arrears Relief Calculator U/s 89(1) With Form 10E from the F.Y.2000-01 to F.Y.2017-18 ( Updated)

• Download Automatic H.R.A. Exemption Calculator U/s 10(13A)

• Download Automated Value of Perquisite Calculator U/s 17(2)

Cases where SEC 80EE is applicable?

The SEC 80EE is applicable in certain cases only. For an assessee, the benefit of SEC 80EE will be only available to him when the following criteria are met:

·                          The assessee should be buying his first house. In other words, the assessee does not own any residential house property on the date of sanction of the loan.

·                          The set limit of the value of the house is INR 50, 00, 000 (50 lakhs)

·                          The sanctioned amount of loan should be equal to or less than INR 35, 00, 000 (35 lakhs)

·                          The day on which the loan has been sanctioned, the assessee should not own any other house.

·                          Loan has to come from either a Housing Finance Company or a Financial Institute

·                          The loan is sanctioned during the period of 1.4.2016 to 31.3.2017.

Note: If an assessee has availed the benefit of deduction under SEC 80EE, he will not be able to take any further benefits in respect of ‘Interest on Loan’ under any other provision of the Income Tax Act for the same assessment year or any other.

The boon of SEC 80EE is NOT AVAILABLE to:

·                          HUF or other people

·                          In cases where deemed owner comes into the picture

·                          Spouse

SEC 80EE includes the consideration for the service fee or any other charge connected to loan. The assessee will not get an additional deduction advantage for charges related to loan approval or any other funding. The date of application for a loan is not important under this section. However, the date of sanction is vital.