Section 80 EE exemption for under construction property

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  1. Thol

    Thol New Member

    I have a question regarding section 80 EE additional interest benefit of 1 lakh on interest paid.i have got my home loan sanctioned on July 2013 for my first property.The total cost of the flat is 38 lakhs.I will be possessing the flat only by Dec 2014.however I have started paying my Emi from August 2013.will I be eligible for availing additional 1 lakh benefit under section 80 EE towards interest payment even though the property is under construction for the current financial year?
  2. Neha Sharma

    Neha Sharma Active Member

    Possession of flat is not important... Only the date on which the loan is sanctioned is important... As your loan was sanctioned before 31st Mar 2014, you can claim benefit under Section 80EE of Rs 1 Lakh
  3. Mrinmoy

    Mrinmoy New Member

    Do you have any evidence for the same? My finance dept saying that possession is required. I have checked IT Circular no 03/2014 but not getting my answer.

    VAIBHAV DILIP RANE Active Member

    Sec 80 EE of the Income Tax Act,

    First understand the conditions, before claiming Deduction u/s. 80 EE :-

    1) Housing Loan (HL) must be Sanctioned by the financial institution (FI) after 01-04-2013.
    2) The amount of HL Sanctioned shall not exceeds Rs. 25 Lakhs.
    3) The Purchase price of a Residential Property shall not exceeds Rs. 40 Lakhs
    4) The Assessee does not Own, any residential property on date of saction of HL

    If you think, you Qualify all the above 4 conditions, than only think for Deduction u/s. 80 EE,

    Deduction will be HL Interest paid in relevant PY or Rs. 100,000 /- whichever is less.

    If your HL Interest is less than Rs. 1 Lakhs in AY, than you can claim the difference in next AY.

    ** Possession is not Important, there must be an agreement to buy a residential property, and a housing loan sanctioned after 01-04-2013, for the same property...
    Last edited: Feb 11, 2014
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