16 November 2014
Applicability- Benefit of this section can avail by Individual assessee. Deduction under this section is not available for any other assessee (like HUF, firm etc.). Individual can claim benefit under this section only when all the following conditions are satisfied, these are- 1. Purchaser should be first time buyer. i.e. he has never purchased any house and now he is going to purchase a house. 2. Value of the house should not more than 40 lakh. 3. Loan taken by Individual for the purpose of buy a house should not be more than 25 lakh. 4. On the date of sanction of loan individual does not have any own residential house property. 5. Loan for this purpose taken by individual should be from the Financial Institution or Housing Finance Company.
For this purpose, loan should be sanctioned between 01.04.13 to 31.03.14. U/s 80EE (4) - Provides that where a deduction under this section is allowed for any interest payable on loan only when deduction shall not be allowed in respect of such interest under any other provisions of the Act for the same or any other assessment year.
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