There is good news about home buyers in this budget. The government has extended the additional tax exemption under Section 80EEA of the Income Tax Act for one year.
Budget 2021: There is good news about home buyers in this budget. The government has extended the additional tax exemption under Section 80EEA of the Income Tax Act for one year. The government gives an additional rebate of Rs 1.5 lakh on home loan interest, which expired on 31 March 2021, it has now been increased to 31 March 2022.
Tax exemption will continue in affordable housing
This exemption in home loan interest was brought in 2019, this exemption is above the tax exemption on the interest of 2 lakh rupees being received under section 24 (b) of income tax. That is, a taxpayer can take a total tax rebate of Rs 3.5 lakhs in a year on the interest of Affordable Housing’s home loan, but there are also some conditions to get this tax exemption.
Conditions for getting tax rebate on home loan interest
1. Home loan taken from any financial institution or bank or housing finance company for purchasing residential house property
2. Home loan taken between April 1, 2021 and March 31, 2022
3. Stamp duty of house property Rs 45 lakh Do not want more than
4. Taxpayers should not already have any residential property
First time home buyers benefit
This step of the government will benefit the people buying the house for the first time. If the loan is taken before 31 March 2021 to buy a house up to Rs 45 lakh, then this deduction can be availed. At present, there are many types of tax benefits on home loans. If someone has a self-occupied property. So the principal of home loan gets a rebate of up to Rs 1.5 lakh under section 80C. Whereas interest of 2 lakh rupees gets tax exemption under section 24 (b).
