Additional tax exemption on home loan will end from April 1, will not get the benefit of section 80EEA

If you are thinking of taking a home loan, then you should do this work before 31st March. Because after March 31, you will not get the additional tax exemption available on the home loan. Actually, the government had added a new section 80EEA in the Income Tax Act in the budget of the year 2019. Under this, there was a provision of additional tax exemption for home loan borrowers to buy affordable houses.

Additional deduction of Rs 1.5 lakh on home loan interest payment

In the last year’s budget, an additional tax exemption of Rs 1.5 lakh was announced annually on the payment of interest on home loans taken between April 1, 2019 and March 31, 2020. This exemption was now extended till March 2022. But now the government in its Budget 2022 proposal has not carried forward this tax break for the financial year 2022-23.

Property value should be up to Rs 45 lakh

For tax exemption under section 80EEA, the stamp duty value of the property should be up to Rs 45 lakh. This exemption can only be availed by a first time home buyer.

Home loan must be approved by 31st March 2022

If you are looking to buy an affordable home by taking a home loan, make sure that your home loan is approved before March 31, 2022. This is because the additional tax deduction for an affordable house under Section 80EEA of the Income Tax Act 1961 will not be available with effect from April 1, 2022.

Home loan can be claimed till completion

Once the loan is sanctioned, one can claim this deduction till the home loan is fully repaid. Deduction under section 80EEA can be claimed only for purchase of houses. Additionally, this deduction can be claimed only by individual buyers.