Home loan grant – principal interest Exemption – with Automated Income Tax Preparation Excel Based Software All in One for the Govt and Private Employees for the F.Y.2021-22


Home loan grant – principal interest exemption. There are basically two components to a home loan installment payment. The principal amount and part of interest. An assessing principal may deduct the maximum amount of Rs.1,50,000. 

In the eyes of the income tax house, the property is divided into two parts let’s go outside the property (rented property) and self-occupied property. The interest rebate provision is different for both properties.

Income Tax Act 1961

Deduction of interest components for self-occupied property under section 24B is Rs. 2 lakhs. The government has allowed the real estate sector to grow further by introducing a new Section 80EEA in the 2021 budget, which is already part of Chapter VI.

The terms and conditions of the 80EE section and the 80EEA section are given below. 

Deduction under Section 80EE

A person is eligible for exemption under Section 80E with a maximum limit of Rs 50,000. 

Terms

1. The value of the house should be less than Rs 50 lakh 

2. Will have to be sanctioned during 2016-17

3. The approved amount should be less than Rs. 35 lakhs

4. The assessor should not have any residential house on the date of approval. 

Deduction under this section will remain available until payment is made.

Deduction up to a maximum of Rs 2 Lacks. Under Section 24, In case of a loan taken for the acquisition of a self-occupied property, Rs.200,000 is available under Section 24 for the interest paid on the loan. 

Deduction Under Section 80EEA

To encourage the real estate sector and to provide additional rebates to the taxpayer, the government introduced more concessions in the Home Loan 2021 budget. 

The conditions for being satisfied for a waiver under section 80EEA are as follows: 

1. It should be approved by any financial institution between April 2019 and March 31, 2021.

2. 80 80EE deductions should not be claimed in case of individual

3. There should be no separate residential house on the date of approval

4. The stamp duty value of the house is 45 lakh

Deduction benefits under this section are available from A.Y. Y 2020-21 and up to the year of subsequent assessment.

This means that the availability of additional discounts approved under 80EEA (Income Tax Act) for interest paid on affordable housing loans in Budget 2021 has been increased to 31 March 2022 within one year. Before the announcement of the budget for 2021, until March 21, 2021.

https://simpletaxindian.com/Salary Structure
https://simpletaxindian.com/Tax Computed Sheet
https://simpletaxindian.com/Income Tax Form 16 Part A
https://simpletaxindian.com/Income Tax Form 16 Part B
https://simpletaxindian.com/Income Tax Form 12 BA

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4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2021-22 (Update Version)

5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2021-22

6) Automated Income Tax Revised Form 16 Part B for the F.Y.2021-22