An individual shall be allowed a deduction under Section 80EE on account of interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential property subject to the following conditions being satisfied:
(i) the loan has been sanctioned by the financial institution during the period beginning on 1-4-2016 and ending on 31-3-2017;
(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed Rs.35,00,000;
(iii) the value of residential house property does not exceed Rs.50,00,000;
(iv) the assessee does not own any residential house property on the date of sanction of loan;
(v) 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.
Quantum of Deduction under Section 80EE :
The deduction under this section shall Not exceed Rs.50 ,000 and shall be allowed in computing the total income of the individual for the assessment year beginning on 1-4-2017 and subsequent assessment years.
|(1) For the purposes of this section,—
(a) “Financial institution” means a banking company to which the Banking Regulation Act, 1949 applies, or any bank or banking institution referred to in section 51 of that Act or a housing finance company;
(b) “Housing finance company” means a public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes.
(2) The deduction under this section is over and above the limit of Rs.2,00,000 provided for a self-occupied property under section 24 of the Act.