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What Are Requirements to Take Benefit of Section 80E

03 May 2022

I want to understand is there any threshhold limit of the Cost of Property and Loan Amount for taking benefit of Section 80 E.

If a person has bought a flat of 75 Lacs rupess and Disbursed Loan amount is 60 Lacs Rupess. Will he be eligible for taking 80E Benefits On His/Her Salary.

Please explain anyone .....

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4 Replies

Kev Men (756 Points)
Replied 03 May 2022

Section 80E is regarding interst on 'Education loan'.

As per Section 80EE, the cost of property should not exceed Rs. 50 lakhs and the loan amount should not exceed Rs. 35 lakhs.

As per section 80EEA, the stamp duty value should not exceed Rs. 45 lakhs.

There are numerous other conditions to be fulfilled in order to claim deductions in the above sections.

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 19 May 2022

The eligibility criteria for deduction under Section 80E is as follows: Any individual applying for a loan for further studies or higher education for himself or on behalf of their spouse, children or student for whom the individual is the legal guardian.

CA Puja Sharma (Chartered Accountant) (4874 Points)
Replied 19 May 2022

Section 80E provides a deduction on interest paid on loans taken for higher education.

Further, 80EEand 80EEA provide income tax deductions on the interest paid for purchasing a residential property through a loan. Some of the conditions associated with 80EE are:

Value of the house should be Rs 50 lakh or less
Loan taken for the house must be Rs 35 lakh or less
The loan must be sanctioned by a financial institution or a housing finance company
The loan must be sanctioned between the specified period
As of the date of the sanction of the loan, no other house property must be owned by you
Maximum deduction of Rs. 1,50,000

If you are looking for a deduction u/s 80EEA, then you are not eligible.

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