New Delhi: Attention home buyers! Are you planning to buy a new house soon? According to recent announcements made by the central government, the fiscal advantages on affordable housing are all set to change starting tomorrow, April 1, 2022.Read also – New income tax rules from April 1, 2022. 7 major changes to put in place from tomorrow
Under Section 80 EEE of the Income Tax Act 1960, house buyers are entitled to an additional tax deduction of Rs 1.5 lakh if the value of the house does not exceed Rs 45 lakh until March 31, 2022. Read also – Interest on the provident fund is likely to be taxed from April 1: check the new guidelines
Homebuyers should be aware that to enjoy this benefit, the carpet area of the home should be less than 60 square meters (645 square feet) in the metropolitan cities of Bangalore, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (entire Mumbai metropolitan area). For all other cities, carpet area must not exceed 90 square meters (968 square feet). Also Read- Himachal Pradesh HC Issues Notice to Himachal Government to Exempt Ministers from Paying Income Tax
The central government had announced in the 2019 budget this additional tax benefit of Rs 1.5 lakh for new home buyers under EEA Article 80 if they meet the criteria. However, this deduction is in addition to the deduction of Rs 2,00,000 for interest payments under Section 24(b) of the Income Tax Act.
The Centre’s move was intended to encourage new buyers to buy affordable housing. The Center in the 2020 and 2021 budgets had extended the benefits for one more year. However, the central government ended this tax relief for the upcoming fiscal year 2022-23 when presenting the 2022 budget.
Speaking to News 18, Sudhakar Sethuraman of Deloitte India said that if a home buyer plans to avail this benefit under Section 80EEA, the home loan must be sanctioned during the period of April 1, 2019 to March 31, 2022. .
He said the stamp duty value of the property of the house should be less than Rs 45,00,000 and the taxpayer should be a first time home buyer and the loan is given to a financial institution during the period. aforementioned.
As the deadline for Section 80 of the EEA under the Income Tax Act ends on March 31, 2022, homebuyers can take advantage of these two key deductions for their home loans:
- Taxpayers will be eligible for an income tax deduction under Section 24(b) of the Income Tax Act in an amount up to Rs 2,000,000 for interest payments during some exercice.
- In addition, taxpayers will also be able to claim a deduction under Section 80C of the Income Tax Act for repayments of principal during the year.