| Question And Answer | |
|---|---|
| Subject: | Interest on loan taken for acquiring a residential house , S.80EEA ? |
| Category: | Income-Tax |
| Querist: | Ravi aiftp |
| Answered by: | Chartered Accountant ., Mr . H. N. Motiwalla |
| Tags: | Interest on loan taken for acquiring a residential house, S.80EEA |
| Date: | January 16, 2024 |
The Finance Act (No. 2) 2019 inserted S. 80EEA to allow deduction of interest on loan taken for acquiring a residential house property. Section inter alia requires that the stamp duty value does not exceed Rs. 45 lakhs.
Whether a person would be entitled to claim S. 80EEA benefit if he has acquired the residential house for Rs. 50 lakhs, if the Ready Reckoner value of the flat Rs. 42 lakhs?
On literal reading it is possible to claim deduction of interest on loan taken for acquiring a residential house property whose stamp duty value does not exceed Rs. 45/- lakhs even though the cost of the residential property was Rs. 50/- lakhs
On comparison with Section 80EE with this section, you will notice that section 80EE state “the value of residential house property …………………” while this section states “the stamp duty value of residential house property ………”
Therefore, it is possible to claim deduction of interest of loan for acquiring residential house property whose stamp duty or ready reckoner value is Rs. 42/- lakhs, though cost was Rs. 50/- lakhs.
Source : AIFTP Journal December 23