Section 80ee loan sanction amount confusion

given that it is a beneficial clause, you have to apply it liberally.  The intention of the legislature is to give benefits to small and medium house buyers. 

Plus, the insurance cost is a revenue expense which anyways gets covered under Section 24.  Whether you pay it upfront or in instalment is not relevant.

It would be advisable for you to keep record of EMI payment toward housing loan repayment and towards insurance separately.

That should be sufficient. 

Disclaimer: you never know how income tax officer may act.  So exercise abundant caution while advising your client.

Originally posted by : Nikhil Kaushik
	given that it is a beneficial clause, you have to apply it liberally.  The intention of the legislature is to give benefits to small and medium house buyers.  Plus, the insurance cost is a revenue expense which anyways gets covered under Section 24.  Whether you pay it upfront or in instalment is not relevant. It would be advisable for you to keep record of EMI payment toward housing loan repayment and towards insurance separately. That should be sufficient.    Disclaimer: you never know how income tax officer may act.  So exercise abundant caution while advising your client.

Thanks Nikhil for your reply.

Generally Banks give certificate that the loan provided is X amount which is in totality consisting of Home Loan + Insurance. Further they resist to provide breakup of EMI towards Home Loan and towards Insurance.

How can a salaried employee convince his employer to include the additional interest deduction u/s 80EE without appropriate certificate from bank.

Thanks and Regards,

Amit

I believe you should not convince your bank to do something which is not ethical.

Well thanks for your reply, but this is an ethical right of the assessee and nothing unethical is requested from the bank.

let me state two things:

1.  Once the certificate regarding break up of home loan and insurance amount is given, it is simple to compute EMI break up

2.  The employer is supposed to take up the whole of the interest as certified by the Bank (this certificate bank will give you) for tax deduction purposes.

3  even if the employer doesn't do it, you can still claim the right amount in your tax return and claim refund.

Originally posted by : Nikhil Kaushik
	let me state two things: 1.  Once the certificate regarding break up of home loan and insurance amount is given, it is simple to compute EMI break up   2.  The employer is supposed to take up the whole of the interest as certified by the Bank (this certificate bank will give you) for tax deduction purposes.   3  even if the employer doesn't do it, you can still claim the right amount in your tax return and claim refund.

if the original loan amounted to more than 25L, say 27L, and if i restructure my loan to 25L, will I be able to claim deduction u/s 80 EE?

what you mean by restructure here??? As far as i understand, no, you shall still not be able to avail 80ee benefits??