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Section 80ee
My wife, first time home buyer, has taken a loan of 25 lacs for a apartment of 40 lacs in 2013-14. The possession was taken in FY 2014-15. No claim was under 80ee was made in AY 2014-15.
The current situation is as follows.
Interest paid during FY2013-14- Rs 1,00,000/- Principle paid during FY2014-15- Rs 30,000/- Interest during FY 2014-15 - Rs 2,20,000/-
Unfortunately this was not reflected in Form 16 and now has to be claimed in IT returns.
For AY 2015-16, can full interest for 2013 -14 ( i.e 1,00,000) be claimed under section 80ee or only 1/5th of the amount be claimed?
In numbers ,
Under sec 24 : Rs 2,00,000 ( this is clear)
Please clarify for section 80ee :
should this be Rs 1,00,00 or
Rs 40,000 ( 20000 of FY 14-15+ 1/5th of 100000 of FY13-14)?
Replies (2)
- Though u have not claimed any deduction u/s 80EE for AY14-15, it cannot be claimed as deduction during AY 15-16. If possible, u can try to revise the return for AY14-15 (provided the assessment is still complete)
- However, u can claim 1/5th of 1 lac as pre-construction interest during AY15-16
- Assuming the house is going to be self occupied, the total deduction that can be claimed as deduction u/s 24b is Rs.2 lacs. Since interest payable for the FY14-15 itself is Rs.2.2 lacs (which already exceeds the limit), additional 20k (pre-construction period interest) wil not give u any further benefit.
- But if the house is let out, then Rs.2.4 lacs (2.2. + 0.2) can be claimed as deduction.
Thanks Poornima.
I was told (misguideed) last year that one cannot make any claim on housing loan till the property is occupied. Will try a revised Return.
Thanks once again for clairfying.
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