Claiming 80EEA: A Guide For Home Loan Transfers

Taxpayers can now claim a deduction of up to Rs. 1.5 lakhs under Section 80EEA of the 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.

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.

• Loans must be taken from a financial institution or a housing finance company.

• It must be taken for the construction or purchasing 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.

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.

Conclusion

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, taxpayers are advised to consult a professional first as there is no explicit provision.

For any queries related to the Section 80EEA, call the general helpline number of the Income Tax Department at 1800 103 0025.