Sec 80EE: Buying house for the first time can save your tax upto Rs 50000admin
First time home owners can get an additional deduction of interest expense on home loan of up-to Rs 50000
Section 80 EE gives you an additional deduction of interest on home loan if you have taken loan for buying your first home.
However, you need to meet the following condition to be eligible for the same:
- You should be a first-time home owner
- The loan should be taken during the FY 2016-17 (i.e. between 1st April 2016 and 31st March 2017)
- Loan should be taken from a bank of housing finance company
- Loan should not exceed Rs 35 lakh
- The house you are buying should not cost more than 50 lakhs
Note that, if you are not able to exhaust the complete Rs 50,000 limit in FY 2016-17, this could be carry forward to FY 2017-18.