Is the deduction under section 80EEA available only for the year of purchase of the asset or is it available during the entire tenure of the loan till the time we pay the interest?
Section 80EEA was introduced by the 2019 budget, which provided for deduction of up to 1.50 lakh, which an individual can claim in respect of interest on home loan, subject to the satisfaction of certain conditions. This deduction is available if your home loan was sanctioned during the period from 1st April 2019 to 31st March 2022 and the stamp duty value of the house purchased does not exceed Rs. 45 lakhs and you do not have any other house. The loan should have been taken from a bank or housing finance company.
This deduction is available on the basis of the date of sanction of the home loan and not on the date of its disbursement. Even the date of purchase or completion of construction of the house property is not relevant for this purpose. You can claim this deduction during the construction period if you had taken a home loan for an under-construction house, unlike the deduction under section 80C for repayment of home loan principal amount and under section 24 for interest on home loan .
This deduction is available for the entire tenure of the home loan. So you can claim it as long as you are repaying the home loan.
(Balwant Jain is a tax and investment expert and can be reached on his Twitter handles jainbalwant@gmail.com and @jainbalwant)
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