Section 80EEA
Budget 2019 proposes
the insertion of section 80EEA to increase the benefit of Tax Deduction on the
interest paid towards home loan up to Rs
45 lakhs for affordable housing. The additional tax deduction of Rs 1.50 lakhs
is for the home loan taken up to 31st March
2020. The cumulative benefit would be Rs
7 lakhs for 15 years loan.
Affordable Housing means a dwelling unit with carpet area
less than or equal to 60 square meters in metropolitan cities or 90 square
meter in cities or towns other than metropolitan cities of Bengaluru, Chennai,
Delhi National Capital Region (limited to Delhi, Noida, Greater Noida,
Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai
(whole of Mumbai Metropolitan Region).
Presently, in case of a self-occupied house, the benefit of
the tax deduction on the interest paid on home loan under section 24B is
restricted to Rs 2 lakhs and on the principal repayment of the home loan the limit is Rs 1.50 lacs under section 80C.
