Is Section 80EEA still available for new home loans? No, the loan must have been sanctioned by March 31, 2022, to qualify for Section 80EEA. However, if your loan was approved before this deadline, you can continue to claim the deduction for the entire repayment period of the loan.
Deduction under 80EE and 80EEA can not be claimed under the new tax regime, however if the house property for which the loan is taken is rented (let out) to somebody else then the interest paid on such loan can be claimed as deduction against such rental income under section 24.
No, you are not permitted to utilise the provisions of both 80EE and 80EEA simultaneously. As mentioned above, these deductions apply to home loans sanctioned in different periods.
Eligibility Criteria
In most cases, you can deduct all of your home mortgage interest. How much you can deduct depends on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds.
Five Most Overlooked Tax Deductions
After your tax bill is calculated a tax credit worth 20% of your mortgage interest payments is deducted from your final tax bill. If you have unused finance costs in a particular tax year it should be possible to carry this forward. You should seek advice from a professional financial adviser about the process.
Under this Sec 80EEA of Income Tax Act, individuals can claim an additional deduction of up to ₹1.5 lakh on home loan interest payments, over and above the ₹2 lakh available under Section 24(b), provided the property's stamp duty value does not exceed ₹45 lakh.
Section 80EE of the Indian Income Tax law allows first-time home buyers to get tax deductions on the interest they need to pay on a Home Loan. You can claim a deduction of up to ₹50,000 per financial year as per this section.
Some of the most common federal tax deductions include:
You can claim the Section 80TTA tax deduction at the time of filing your Income Tax Returns. However, the deduction under 80TTA is applicable only to taxpayers who have opted for the old tax regime. Section 80TTA in the new tax regime is not applicable.
Many Indians working abroad invest in property back home, often through home loans. As NRIs, they can claim tax deductions on loan repayments just like resident Indians.
Once the complete interest component paid is determined, claim deduction up to Rs. 2,00,000 (under Section 24(b) of the Income Tax Act, 1961). The surplus amount, up to Rs. 50,000, can be claimed under Section 80EE of the Income Tax Act, 1961.
To claim deductions under income tax section 80EE, individuals must meet specific conditions:
If you are a salaried individual who aims to build a new property with the loan amount, you can apply for a mortgage loan tax exemption under section 24 (B) of the Income Tax Act, 1961. You can apply for a tax deduction of up to ₹ 2 lakhs on the interest payments.
If you took a home loan between April 1, 2016 - March 31, 2017, and meet the eligibility criteria, you qualify for Section 80EE. However, if your loan was sanctioned between April 1, 2019 - March 31, 2022, and your property's stamp duty value is ₹45 lakh or less, you can claim Section 80EEA.
What is 80EEA Deduction? 80EEA was added to the Income Tax Act of 1961 in 2019. This section offers relaxation in the income tax for first-time homebuyers in India. This means that the house buyer should not own any other property in their name.
Yes. NRIs can claim Section 24(b) deductions if: the property is in India, the loan is from an Indian bank or financial institution, and the NRI has taxable income in India.
Homeowners may refinance mortgage debts existing on 12/15/2017 up to $1 million and still deduct the interest, so long as the new loan does not exceed the amount of the mortgage being refinanced. The Act repealed the deduction for interest paid on home equity debt through 12/31/2025.
The main pro of the mortgage interest deduction is that it lowers your tax liability, incentivizing you to get a mortgage and buy property. If you already itemize your deductions, it's simply another way to help lower your tax bill.
Mortgage interest deduction limit is now permanent
The limit was set to expire at the end of 2025, but the OBBBA makes it permanent. The threshold will continue to be: $750,000 (for most filers) $375,000 (for Married Filing Jointly)
Basically, the de minimis safe harbor allows businesses to deduct in one year the cost of certain long-term property items. IRS regulations set a maximum dollar amount—$2,500, in most cases—that may be expensed as "de minimis," which is Latin for "minor" or "inconsequential." (IRS Reg. §1.263(a)-1(f) (2025).)
While a $10,000 tax refund might sound like a dream, it's achievable in certain situations. This typically happens when you've significantly overpaid taxes throughout the year or qualify for substantial tax credits. The key is understanding which credits and deductions you're eligible for.
In 2021, Congress lowered the threshold for reporting income on payment apps from $20,000 and 200 transactions annually to $600 for a single transaction.
Hence, an individual who does not meet the criteria of Section 80EE shall now be eligible to claim deduction under Section 80EEA of up to Rs. 150,000 in addition to deduction under section 24(b). This deduction is available from Assessment Year 2020-21.