• Notification Date: 10-03-2022
• Notification No: N/A

Home Loan Benefits Unavailable after March 31

The Central Government has decided to discontinue the home loan benefits from April 1. The home loan benefits that were available under Section 80EEA for the first-time home buyers have been withdrawn by the Government. The Center had announced an additional Income-tax benefit of Rs.1.50 lakh in Budget 2019. The benefit was available for those home-buyers who are buying their first property paying the stamp duty up to Rs.45 lakh.

In 2020 and 2021, the Government extended this facility for another year respectively. According to the recent tax Income-tax regulations, if a home buyer, making a first-time purchase, seeks a loan and it gets sanctioned by 31 March and receives a disbursal in FY23, then the home buyer will be eligible to claim the tax exemption benefits. The limitation of home loan interest exemption is Rs.1.5 lakh in one financial year for the entire tenure of the loan.

According to the new Income-tax regulations, a home loan borrower will be eligible for availing two Income-tax benefits. The tax exemption benefits will be available under Section 24(b) and Section 80C of the Income-tax Act. The home buyer can avail of tax exemption benefits up to Rs.2 lakh in one financial year on a home loan interest under Section 24(b). The benefits under this Section can be claimed after the owner gets possession of the property.

Under Section 80C, the home buyer can avail of a tax exemption up to Rs.1.5 lakh on the principal amount of the property through home loan EMI.