Section 80EE: Tax Benefits for First-Time Home Buyers

What is Section 80EE? Section 80EE offers first-time homebuyers a tax deduction on home loan interest to ease their financial burden. 2. Eligibility Criteria: Must be a first-time homebuyer. Individual taxpayers only. Excludes Hindu Undivided Families, companies, and firms.

3. Conditions to Claim: House value should be ≤ INR 50 lakh. Loan should be ≤ INR 35 lakh. Loan sanctioned between April 1, 2016, and March 31, 2017. No other residential property owned at loan sanction date. 4. Deduction Limit: Up to INR 50,000 annually. In addition to INR 2 lakh deduction under Section 24.

5. Section 80EE vs. 80EEA: 80EE: Up to INR 50,000, loans from April 2016 to March 2017. 80EEA: Up to INR 1.5 lakh, loans from April 2019 to March 2022. 6. Section 80EE vs. Section 24(b): 80EE: For first-time homebuyers only, additional INR 50,000. 24(b): Up to INR 2 lakh for self-occupied, no limit for let-out properties.

7. Applicable ITR Forms: ITR 1, 2, 3, 4 depending on income sources. 8. Supporting Documents Needed: Home loan repayment certificate. Interest certificate from the lender.