Section 80EE Deduction can be claimed by an individual for amount paid as interest on home loan. The maximum deduction under Section 80EE is Rs.50,000. Section 80EE deduction can be claimed over and above the deduction of section 24 and section 80C which are Rs. 2,00,000 and Rs. 1,50,000 respectively.

Eligibility for Claiming Section 80EE Deduction

Section 80EE deduction is allowed subject to fulfilment of the following conditions:

Approved Institutions

Loan was taken from a banking company including regional rural banks or a housing finance company for the purpose of acquisition of a residential property.

Sanction Date

The loan has been sanctioned by the financial institution during the period beginning on 1 April, 2016 and ending on 31 March, 2017.

Amount of Loan

The amount of loan sanctioned for acquisition of the residential house property does not exceed thirty-five lakh rupees.

Value of Property

The value of residential house property does not exceed fifty lakh rupees.

First time Home Owner

The assessee does not own any residential house property on the date of sanction of loan.

Deduction not claimed under other section

Where a deduction under this section is allowed for any interest, 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.