First-time homebuyer? You can claim up to Rs 5 lakhs as Income Tax deductions if you are taking a home loan
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If you are buying a home for the first time, you are entitled to get income tax benefits on it under three sections —Â
1) Section 24
2) Section 80EEA
3) Section 80C
1) Section 24 - It permits a deduction of up to 2 lakh rupees on the interest paid for a house loan acquired for a self-occupied property, and it provides a deduction of the entire interest for a property that is let out.
2) Section 80EEA - A deduction for interest payments up to Rs 1,50,000 is available under Section 80EEA. 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.
Some Conditions to claim 80EEA
1) Loan must be taken from a financial institution
2) Loan should be sanctioned 1st April 2019 - 31st March 2022
3) Stamp duty value should be < Rs 45 lakhs
4) Taxpayer should be a first-time home buyer & some restriction to the carpet area