Section 80EE allows tax benefits for first time home buyers who are individuals on home loan interest.The deduction allowed under this section is for interest paid on home loan up to maximum Rs 50,000 per financial year. You can claim this deduction until you have fully repaid the loan.
Conditions that you must satisfy for claiming the benefit under this section –
- This is the 1st house you have purchased
- Value of this house is Rs 50 lakhs or less
- Loan taken for this house is Rs 35 lakhs or less
- Loan has been sanctioned by a Financial Institution or a Housing Finance Company
- Loan has been sanctioned between 01.04.2016 to 31.03.2017
- As on the date of sanction of loan no other house is owned by you
- It is available for both resident and non-resident.
- The limit of Rs.50000 is in addition to deduction u/s 24.