Interest paid on loan taken for residential house property : Deduction u/s 80EE of Income Tax Act

Deductions permitted u/s 80EE of Income Tax Act
Deduction in respect of interest on loan taken for residential house property (Section 80EE)

In computing the total income of an individual, there shall be deducted, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential house property.

The deduction shall not exceed Rs. 1,00,000 and shall be allowed in computing the total income of the individual for the assessment year 2014-15 and in a case where the interest payable for the previous year 2013-14 is less than Rs. 1,00,000, the balance amount shall be allowed in the assessment year 1015-16.

The deduction shall be subject to the following conditions:

(i) the loan is sanctioned by the financial institution during the period beginning on 1st April, 2013 and ending on 31st March, 2014;

(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed Rs. 25,00,000;

(iii) the value of the residential house property does not exceed Rs. 40,00,000;

(iv) the assessee does not own any residential house property on the date of sanction of the loan.

Where a deduction under this section is allowed for any assessment year, in respect of interest referred above, deduction shall not be allowed in respect of such interest under any other provisions of the Income-tax Act for the same or any other assessment year.