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Section 80 ee

dipanshu (article assistant) (80 Points)

03 June 2015

Can anyone tell me does section 80 EE also applies to Let out Property or the deduction is only available if th eproperty is Self-Occupied???

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6 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 03 June 2015

Yeah it can be claimed for both as there is no such condition to self occupy or let out

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DEEPU HN (Associates) (360 Points)
Replied 03 June 2015

no such condition, but only thing is u need to satisify condition mentioned in 80EE.

condtion

Insertion of new section 80EE.

13. After section 80E of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2014, namely:�

'80EE. Deduction in respect of interest on loan taken for residential house property.�(1)In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential house property.

(2) The deduction under sub-section (1)shall not exceed one lakh rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2014 and in a case where the interest payable for the previous year relevant to the said assessment year is less than one lakh rupees, the balance amount shall be allowed in the assessment year beginning on the 1st day of April, 2015.

(3) The deduction under sub-section (1)shall be subject to the following conditions, namely:�

(i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2013 and ending on the 31st day of March, 2014;

(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;

(iii) the value of the residential house property does not exceed forty lakh rupees;

(iv) the assessee does not own any residential house property on the date of sanction of the loan.

(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1),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.

(5) For the purposes of this section,�

(a) "financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies including any bank or banking institution referred to in section 51 of that Act or a housing finance company;

(b) "housing finance company" means a public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes.'.

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jafar (Article) (31 Points)
Replied 03 June 2015

Does this deduction differ from sec 24 under house property

dipanshu (article assistant) (80 Points)
Replied 04 June 2015

Dear Jafar,

Section 80EE doesnot differ from Section 24, But it has a additional impact over and above section 24. So you can claim maximum 200000 deduction U/s 24 and if you have bought your house following the conditions of section 80EE, then you can claim additional deduction of Rs 100000. So in total you can claim deduction of Rs 300000 U/s 24 and 80EE (Provided you have followed the conditions of both the section. And yes this all limit is for Self-occupied property, as such there is no limit if it is Let out property

Rajesh Kumar Gupta (Senior Divisional Manager) (714 Points)
Replied 04 June 2015

In a let out property one can claim any amount as calculated by following norms as a loss under house property. Even ceiling of 2.5 lacs or 1.5 lacs + 1 lac is not applicable.

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Sunil (TRP) (29 Points)
Replied 09 June 2015

One of my client had filed his return for Ay 14-15,He claim home loan interest of 28000 in section 24 & put section 80EE nil but actually he satisfies all the conditions eligible for 80ee.Now does he claim this in Ay 15-16 & also section 24(120000 interest).