03 June 2013
In the Finance Budget 2013, Finance minister introduced a new section 80EE in Inome Tax Act, which is related to additional deduction of Rs 1 Lac for payment of intrest for housing loan to a certain condition.
In the conditions one point is that “Interest allowed under this section can’t be allowed under any other section like 24(b).
So my confusion is that “This benefit would be additional benefit over Rs 1.5 lac as allowed under section 24(b) or this anyone can avail either 24(b) or 80 EE”..
03 June 2013
This section allows for additional deduction up to Rs. 100000/- for the AY 2014-15 (i.e. FY 2013-14) to individual assesses for interest payable on their housing loan. This deduction will be over and above the deduction of Rs 150,000 allowed for self- occupied properties under section 24 of the Income Tax Act For claiming deduction under section 80EE, following conditions need to be met: The value of residential house does not exceed Rs. 40 Lakhs The loan sanctioned does not exceed Rs. 25 Lakhs The loan is sanctioned between the FY 1/4/2013 and 31/3/2014. The assessee is a first time home buyer. The assessee does not own any other residential house as on the date of sanction of the loan. This house is supposed to be his self occupied property
03 June 2013
But in the latest Ready Reckoner (by Dr. V.K. Singhania)it has mentioned that "If deduction is claimed under section 80EE, no deduction will be allowed in respect of such income under any other provision of the Act for the same or any other assessment year."
03 June 2013
It is also provided that where a deduction under this section is allowed for any assessment year, in respect of interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provisions of the Income-tax Act for the same or any other assessment year.
03 June 2013
In that case what is the benefit to introduce this section?
Assessee can avail deduction to the Rs 1.5 Lac under section 24 then why would want to apply in this while the limit under this section is just Rs 1 lac.
I think it would be addtional deduction over and above section 24.
CAclubindia
