What is the maximum value of the property for which this deduction can be claimed?

The property must not exceed Rs. 45 lakhs in value.

What is the eligibility criteria for claiming this deduction?

Loans must be for residential properties, taken from financial institutions, and no other residential property should be owned.

Can the deduction be claimed if the home loan is transferred to another bank?

Yes, as long as the loan conditions remain the same and the documentation is updated.

How do I get my 80EEA certificate?

There is no separate 80EEA certificate; you need an interest certificate from your bank or financial institution showing the interest paid on the eligible home loan.

Who is eligible for the 80EEA exemption?

An individual taxpayer who is a first-time homebuyer can claim Section 80EEA if the home loan was sanctioned between 1 April 2019 and 31 March 2022 and the stamp duty value of the house does not exceed ₹45 lakh.

What is the maximum 80EEA deduction?

You can claim up to ₹1.5 lakh per year on home loan interest, over and above Section 24(b).

Can we claim both 80C and 80EEA?

Yes, Section 80C can be claimed for principal repayment while Section 80EEA can be claimed separately for interest payment, provided all eligibility conditions are fulfilled.

What is the difference between section 24 and 80EE and 80EEA?

Section 24 allows a deduction up to ₹2 lakh on interest for a self-occupied house, while Sections 80EE and 80EEA provide additional interest deductions specifically for first-time homebuyers under defined conditions.

Can I claim 80EE every year?

Yes, Section 80EE can be claimed every year until the home loan interest benefit is fully exhausted, subject to the annual deduction limit.

Can you deduct 100% of your mortgage interest?

No, mortgage interest deduction is capped, usually at ₹2 lakh under Section 24 for self-occupied property, with limited additional benefits under 80EE or 80EEA.

Can stamp duty be claimed under 80EEA?

No, stamp duty and registration charges cannot be claimed under Section 80EEA; they are allowed only under Section 80C within its overall limit.

Can I claim home loan interest in ITR?

Yes, home loan interest can be claimed in the Income Tax Return under Section 24 and, if eligible, additionally under Section 80EE or 80EEA.

Is inr ₹7 lacs income tax free in India?

Yes, under the new tax regime, income up to ₹7 lakh is effectively tax-free due to the rebate available under Section 87A.

How much tax will be exemption for a home loan?

Tax exemption on a home loan can go up to ₹2 lakh on interest under Section 24, plus up to ₹1.5 lakh under 80EEA and ₹1.5 lakh on principal under Section 80C if eligible.

Can you claim your mortgage interest as a tax deduction?

Yes, mortgage interest can be claimed as a tax deduction under Section 24, and additional deductions may be available under Sections 80EE or 80EEA.

Who is eligible for 2.67 lakh subsidy?

The ₹2.67 lakh subsidy is available under the PMAY scheme to eligible first-time homebuyers belonging to the Economically Weaker Section or Low-Income Group, subject to income and property conditions.

How to claim 80EEA deduction?

You can claim the 80EEA deduction while filing your Income Tax Return by entering the eligible home loan interest amount and keeping supporting loan documents and interest certificates for verification.

Can we claim both 80C and 80EEA?

Yes, Section 80C can be claimed for principal repayment while Section 80EEA can be claimed separately for interest payment, provided all eligibility conditions are fulfilled.

Can I claim 80EE every year?

Yes, Section 80EE can be claimed every year until the home loan interest benefit is fully exhausted, subject to the annual deduction limit.

Can you deduct 100% of your mortgage interest?

No, mortgage interest deduction is capped, usually at ₹2 lakh under Section 24 for self-occupied property, with limited additional benefits under 80EE or 80EEA.

Can stamp duty be claimed under 80EEA?

No, stamp duty and registration charges cannot be claimed under Section 80EEA; they are allowed only under Section 80C within its overall limit.

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Claiming 80EEA Foe Home Loan Under Tax Regime

Q: What is Section 80EEA?

It allows taxpayers to claim a deduction of up to Rs. 1.5 lakhs on interest paid for a housing loan.

Q: How is the deduction calculated?

A maximum of Rs. 1.5 lakhs can be claimed per financial year on the interest paid.

Q: What is Section 80EEA?

It allows taxpayers to claim a deduction of up to Rs. 1.5 lakhs on interest paid for a housing loan.

Q: How is the deduction calculated?

A maximum of Rs. 1.5 lakhs can be claimed per financial year on the interest paid.

Pragya Pathak

Author

Updated: 05-01-2026 at 3:30 PM

Home ownership is one of the biggest decisions that most Indian citizens make and look forward to. However, it is difficult for many, especially those planning to buy their first homes. To make things easier for the citizens and help them deal with recent challenges, like rising property charges, the government of India introduced some sections in the Income Tax Act of 1961.

Taxpayers can now claim a deduction of up to Rs. 1.5 lakhs under Section 80EEA of Income Tax Act. This provision was introduced to promote affordable housing for all. It is applicable for loans taken between April 1, 2019, and March 31, 2022, and with the value of the house not exceeding Rs. 45 lakhs. These aren’t simply sections but a way of making people’s dreams come true, that is, affordable housing. Therefore, people should learn all about the related sections in the Income Tax Act to utilise them for their benefit.

Read the article to learn more about the sections concerning home ownership of the Income Tax Act, including information on Interest u/s 80EEA and 80EE deduction, along with details on related sections like 24B and 80EEA.

Overview

The table below summarises some key details about Sections 80EE and 80EEA of the Income Tax Act that one should know.

Concerned sections of the Income Tax Act	Sections 80EE and 80EEA
Objective	To help people in purchasing their first homes through affordable means
Deduction on	Deduction on interest paid on housing loan
Eligible for	Individual taxpayers buying their first homes
On what types of property?	Residential properties only
80EEA deduction limit	1,50,000 per financial year
Loan sanction period under Section 80EEA	April 1, 2019, and March 31, 2022

What Is Section 80EEA Of The Income Tax Act, 1961?

Section 80EEA of Income Tax Act allows people to claim a deduction for the interest that has to be paid on the housing loan. The loan taken must be for a residential house only. Both sections 24B and 80EEA can work together to make tax laws helpful for eligible first-time homeowners.

The government’s objective of “Housing for All” is to promote affordable housing. Section 80EEA allows a deduction of interest for loans taken between the period of April 1, 2019, and March 31, 2022. Section 80EEA allows loan takers to claim a deduction up to Rs. 1.5 lakhs per financial year until the loan is completely repaid.

What Is The Eligibility Criteria To Claim The Section 80EEA Deduction?

Loan takers must ensure that they comply with the following eligibility criteria to claim the deduction. The 80EEA deduction eligibility Income Tax is as follows:

Loans must be taken from a financial institution or a housing finance company.
It must be taken for the construction or purchase of a residential property.
The residential property must be valued under Rs. 45 lakhs.
Loan taken between the period of April 1, 2019, and March 31, 2022.
Must not have claimed any other deduction in that financial year.
Must not own any other residential property at the same time.

A taxpayer can continue to claim their Section 80EEA deduction if they transfer their home loan to a different bank for better interest rates. They can do this, given that the original conditions of the home loan are met and the loan is for the same property as mentioned in Section 80EEA of Income Tax Act PDF download.

Taxpayers should ensure they have all necessary documents from both the original and new banks. These documents should have all the details of the home loan transfer and the interest payments made.

How Is The Deduction Calculated?

Let’s understand how the deduction amount is calculated with the help of an example.

Mr X took out a home loan in the financial year 2020-21 for a house with a stamp duty value of Rs 40 lakh. He paid Rs 4,00,000 in interest for the year. He did not own any other residential property on the date the loan was issued. Will Mr X be eligible to apply for Section 80EEA?

Mr X is eligible for a Rs 1,50,000 deduction under Section 80EEA. As a result, Mr X is eligible for a total deduction of Rs 3,50,000 under Sections 80EEA and 24.

Benefits Of Section 80EEA

There are several benefits of optimally using the Section 80EEA, some of which are described below in brief points:

One of the major benefits of the Section 80EEA of Income Tax Act is to provide a deduction of up to Rs. 1.5 lakh on home loan interest and deduction of up to Rs. 2 lakh as per Section 24B, which makes the total deduction to Rs. 3.5 lakh.
As the section is only for residential properties, it makes the dream of purchasing a house practical for many middle-class families. It also encourages people to purchase homes and invest in their first houses.
Another benefit of this section is its flexibility. Taxpayers can claim and enjoy this deduction even if they transfer their home loans to another bank for a better interest rate.
Section 80EEA of Income Tax Act helps the government in fulfilling its mission of ‘Affordable Housing For All’, irrespective of their economic backgrounds.

Conclusion

Section 80EEA of Income Tax Act is one of the most important sections when it comes to purchasing a home. By ensuring that the taxpayer meets the existing conditions of the home loan, the bank will not disqualify the taxpayer from claiming the Section 80EEA deduction. With proper documentation and reasoning, they can continue to claim their deduction.

However, as tax laws can be confusing for many and can be misinterpreted easily, it is always advised to consult a professional first before claiming the section’s deductions as per the Income Tax Act of India. Please keep yourself educated and updated about all the specifics of the tax laws to use their benefit optimally.

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