After section 80EE of the Income-tax Act, sections 80EEA shall be inserted with effect from the 1st day of April, 2020.
(1) In computing the total income of an assessee, being an individual not eligible to claim deduction under section 80EE, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential house property.
(2) The deduction under sub-section (1) shall not exceed Rs. 1,50,000/- and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2020 and subsequent assessment years. This deduction is over and above the deduction of Rs 2 lakh for interest payments available under Section 24(b) of the Income Tax Act.
(3) The deduction under sub-section (1) shall be subject to the following conditions, namely:—
| (i) | the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2022; | |
| (ii) | the stamp duty value of residential house property does not exceed forty-five lakh rupees; | |
| (iii) | Stamp duty value of the house property should be Rs 45 lakhs or less. | |
| (iv) | Loan amount under this section not specified. | |
| (v) | The carpet area of the house property should not exceed 60 square meter ( 645 sq ft) in metropolitan cities and for any other cities or towns the carpet area should not exceed 90 square meter (968 sq ft). | |
| (vi) | The taxpayer should be a first-time home buyer. The taxpayer should not own any residential house property as on the date of sanction of the loan. | |
(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year.
