This Home Loan benefit Won't be Available After March 31 2022; Check Complete Details

This Home Loan benefit Won't be Available After March 31 2022; Check Complete Details Prime Minister Narendra Modi-led NDA Govt in its first term that started in 2014, launched its flagship ‘Housing for All by 2022’ Programme. Under the objective “Housing for all”, the government has now extended the interest deduction allowed for low-cost housing loans taken during the period between 1 April 2019 and 31 March 2022. The deduction under Section 80EEA is available only to individuals. This deduction is not available to any other taxpayer. You cannot claim any benefit under this section if you are a HUF, AOP, partnership firm, company, or any other kind of taxpayer. Also in order to claim deduction under Section 80EEA, you should not own any other house property on the date of the sanction of a loan. The income tax deduction under Section 80EEA for first-time home buyers will be phased down on 31st March 2022. In Budget 2019, the government granted an additional 1.50 lakh income tax credit for home loan borrowers who pay stamp duty up to 45 lakh for their first property. This deduction is over and above the deduction of Rs 2 lakh for interest payments available under Section 24(b) of the Income Tax Act. This facility was extended for another year in the budgets of 2020 and 2021, respectively. According to tax and investment experts, if a new home loan borrower receives a home loan sanction letter by March 31, 2022, and receives disbursement in FY23, he or she will be able to claim this additional income tax exemption benefit on up to 1.5 lakh in home loan interest payments in a single financial year for the duration of the loan. Beginning with the next financial year's ITR, taxpayers under Section One will no longer be able to claim the 80EEA tax benefit because it will expire on March 31, 2022. However, if the taxpayer plans to purchase his dream home in the coming financial year, he may be eligible for an income tax exemption on home loan interest payments up to Rs.1.50 lakh each financial year. If a house loan borrower has a home loan sanctioned between April 1, 2019 and March 31, 2022, he can claim an income tax benefit under section 80EEA. As a result, if a new borrower receives a house loan sanction letter by March 31, 2022 and receives disbursement in the next financial year, he is able to claim an income tax benefit under section 80EEA on home loan interest paid up to Rs.1.50 lakh in a financial year. With effect from April 1, 2022, a home loan borrower will be eligible for two income tax benefits under Section 24(b) and Section 80C of the Income Tax Act, according to the Income Tax Rules. A home buyer can claim an income tax deduction of up to Rs 2 lakh on the interest component of his home loan EMI under section 24(b) in a financial year. This advantage, however, can only be claimed once you have taken possession of the property. Borrowers can claim tax savings of up to Rs 1.5 lakh on the principal amount paid through house loan EMIs under Section 80C.