• Notification Date: 07.02.2022
• Notification No: N/A

How to Claim while buying Home under Section 80EEA

Union Finance Minister Nirmala Sitharaman has declared the extension of income tax benefits for home buyers under Section 80EEA in the Budget 2022. The provisions are applicable till 31^st March 2022. Under the new provisions, the home buyers will be able to claim income tax exemption on home loan interests up to Rs.1.50 lakh on EMI payments. The price of the property has to be under Rs.45 lakhs to avail of the exemption provision. The benefit of home loan interest has not been extended in Budget 2022. The buyers are required to pay excess income tax in the upcoming financial year. An individual who is willing to buy a new property in the next financial year, the person is eligible for applying for the income tax benefits. The application for income tax benefits can be made while filing the income tax returns. But the loan is required to be approved in the current financial year. Under this condition, the person can buy a new property in the upcoming year.

Mumbai-based tax and investment expert, Balwant Jain has explained how the home buyers can avail themselves of the income tax benefits under Section 80EEA of the Income-tax Act. He has said that a new home buyer will not be able to claim the Income tax benefits under Section 80EEA if the person is filing the ITR from the upcoming fiscal. The buyer cannot avail of the benefits since the exemptions are valid till 31^st March 2022.

Another query regarding the availability of the Income-tax benefits under Section 80EEA is how the taxpayers who are repaying the home loan EMI can claim the benefits of the tenor of the loan. This is a matter of discussion since the interest exemption facilities are valid up to 31^st March 2022. On this matter, Balwant Jain has commented that since the loan EMI facilities are available till 31 March 2022, the home buyer is required to apply for a home loan as soon as possible and receive the loan sanction letter before the present fiscal year ends. If the individual receives the home loan sanction letter within 31 March 2022, then he or she can avail of the interest exemptions as offered under Section 80EEA. The buyer can enjoy the benefits for the entire tenor of the home loan even if the property is bought after a while of the loan sanction within the given period of validity. Mr Jain further added that the exemption of home loans is applicable for those individuals who are not subjected to any ongoing home loan and the value of their property is under Rs.45 lakhs.