Section 80EE: First Home Buyer Deduction#
What is Section 80EE?#
Section 80EE provides additional deduction for interest on home loan for first-time home buyers.
Deduction#
Amount: Rs 50,000/year
Over and above Section 24
Eligibility#
- Individual
- First time home buyer
- Property value < Rs 50 lakh
- Loan < Rs 35 lakh
- No other house property
Conditions#
- Loan from bank/HFC
- Interest certificate required
- Should not own any other house
- Property should be residential
Example#
Home loan interest: Rs 3,50,000
| Section | Deduction |
|---|---|
| Section 24 | Rs 2,00,000 |
| Section 80EE | Rs 50,000 |
| Total | Rs 2,50,000 |
Important Points#
- Available from FY 2016-17
- Can claim for multiple years
- Not available for second home
- Pre-owned house not eligible