The 80ee vs 80eea
of the Income Tax Act provides deductions on interest paid on home loans. However, they have different applicability and conditions.
Here are the key differences between
80eea vs 80ee
:
Section 80EE:It provides a deduction on interest paid on loans for first-time homebuyers. Only individuals who are first-time homebuyers and availed a home loan are eligible for this deduction.
The loan amount should not exceed Rs. 25 lakhs and the value of the property purchased should not exceed Rs. 40 lakhs.
The maximum deduction allowed under Section 80EE was Rs. 1 lakh per financial year. The individual must not own any residential house property on the date of the sanction of the loan.
Section 80 EEA:The deduction under Section 80 EEA is available for individuals who have taken a loan for the purchase of a residential property. There is no restriction on whether the individual is a first-time homebuyer.
The maximum deduction under Section 80 EEA is Rs 1.5 lakh per financial year. The stamp duty value of the property should not exceed Rs. 45 lakhs. The individual must not own any residential house property on the date of sanction of the loan.
This should help you understand
what is the difference between 80ee and 80eea in detail. Let me know if you have any more questions.
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If you are wondering
What is Section 80EE and 80EEA let me tell you that
80EE and 80EEA are sections of the Indian Income Tax Act that provide tax benefits to individuals who have taken home loans for the purpose of purchasing or constructing residential properties.
A maximum deduction of Rs 50,000 can be claimed under Section 80EE and for Section 80EEA, the deduction is Rs. 1,50,000 on the interest portion of the home loan EMIS. The basic meaning of these sections must be clear by now. In order to know more, you should know the difference between 80EE and 80EEA in this answer. Read this answer to the end to know everything about these sections.
What is the difference between section 80EE and 80EEA?
The differences between 80EE and 80EEA are-
| Aspect | Section 80EE | Section 80 EEA |
| Maximum Deduction Allowed | Rs 50,000 (only on the interest portion of the loan EMIs) |
Rs 1,50,000 (only on the interest portion of the loan EMIs) |
| Applicable on | The home loans that are availed in the Financial Year (FY) 2013-14, FY 2014-15 and FY 2016-17 |
The home loans that are availed in the Financial Year FY 2020-21 and FY 2021-22 |
| Eligibility | The value of the property must not exceed Rs. 50 Lakhs |
The carpet area of the property must be below 60 sq mt for metro cities and for towns and cities the carpet area of the property must not exceed 90 sq mt. |
Remember that only first-time home buyers are eligible for Section 80EE or 80EEA. They should not own any residential property as of the date of the sanction of the loan.
So this is the 80EE and 80EEA difference. Do note that there is no lock-in period for both of these sections and only first-time homebuyers are eligible for them.
If you know of any other difference between 80EE and 80EEA, please do share it here.
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Kaushal
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2023-05-16T11:16:55+00:00 2024-01-02T15:54:08+00:00Comment
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