ADVERTISEMENT
Daily Expert News
No Result
View All Result
Monday, March 27, 2023
  • Home
  • World
  • Economy
  • Business
  • Markets
  • Arts & Culture
  • Education & Career
  • India
  • Politics
  • Top Stories
Daily Expert News
  • Home
  • World
  • Economy
  • Business
  • Markets
  • Arts & Culture
  • Education & Career
  • India
  • Politics
  • Top Stories
No Result
View All Result
Daily Expert News
No Result
View All Result
  • Home
  • World
  • Economy
  • Business
  • Markets
  • Arts & Culture
  • Education & Career
  • India
  • Politics
  • Top Stories
ADVERTISEMENT
Home Economy Tax News

Income tax rules for home buyers will change from April 1. Know tax deductions

by Nick Erickson
March 31, 2022
in Tax News
Reading Time: 3 mins read
126 7
0
Income tax rules for home buyers will change from April 1. Know tax deductions
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT


Are you planning to buy a new home soon? The income tax benefits on affordable housing will change from April 1, 2022. Under Section 80 EEA of the Income Tax Act, 1960, home buyers are eligible for an additional income tax deduction of Rs 1.5 lakh if ​​the value of the property does not exceed Rs 45 lakh until March 31, 2022. To take advantage of this benefit, the carpet area of ​​the house must be less than 60 square meters (645 sq ft) in metropolitan cities Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (the entire Mumbai metropolitan region). For other cities, the carpet area cannot exceed 90 square meters (968 sq ft).

In the 2019 budget, the center had announced this additional income tax benefit of Rs 1.5 lakh for new home buyers under Section 80 EEA if they meet the prescribed criteria. This deduction is in addition to the deduction of Rs 2,000,000 for interest payments under Section 24(b) of the Income Tax Act.

The measure is intended to encourage new home buyers to buy affordable housing. Later in the 2020 and 2021 budget, the Center extended the benefits for another year respectively. However, the Union government has withdrawn this tax credit for the coming fiscal year 2022-23 during the 2022 budget.

Home buyers can get an additional benefit of Rs 1.5 Lakh under section 80EEA: know-how

ADVERTISEMENT

For a home buyer to take advantage of the benefits under Section 80EEA, the home loan must be approved in the period from April 1, 2019 to March 31, 2022, explains Sudhakar Sethuraman, partner, Deloitte India. The value of the stamp duty of the house must be less than Rs 45,000,000. The taxpayer has to buy a house for the first time and the loan is made during the above-mentioned period from a financial institution. It is imperative to note that the taxpayer taking advantage of the benefit under Section 80EEA will not be able to re-use the deduction in respect of the interest payments under other provisions of the Income Tax Act, he added. to.

Prashant Thakur, Sr. Director and Chief of Research, ANAROCK Group explained the rationale and benefits of Section 80EEA: “Under the ‘Housing for All’ initiative, the central government has extended the interest deduction for affordable housing loans taken in the period between FY 2019-20 to March 2022. Under Section 80EEA, the Affordable Home Buyers (property valued less than Rs 45 lakh) were given the benefit of a deduction of Rs 1.5 Lakh in addition to Rs 2 lakh for interest payment available under Section 24(b) of the Income Tax Act. In total, they could avail of deductions up to Rs 3.5 lakh for interest on a home loan.”

ADVERTISEMENT

It should be noted that if a home buyer receives a home loan by March 31, 2022 and receives the loan after April 1, 2022, he or she is eligible for the Article 80 EEA deduction for the entire term of the home loan.

Income tax benefits Home buyers can make use of April 1, 2022

ADVERTISEMENT

As the Section 80 EEA deadline under the Income Tax Act expires on March 31, 2022, home buyers will now be able to take advantage of two other major deductions for their home loans.

1) Taxpayers are eligible for income tax deduction under Section 24(b) of the Income Tax Act up to Rs 2,000,000 in interest payments during the fiscal year. “If the house is rented out, losses in excess of Rs 2,000,000 due to interest payments can be carried forward during eight assessment years and can be offset against rental income in subsequent years,” explains Sethuraman.

2) In addition, taxpayers can claim a deduction during the financial year under Article 80C of the Income Tax Act for repayment of the principal.

Read all the latest news, breaking news and IPL 2022 Live Updates here.

Tags: AprilBuyerschangeDailyExpertNewsdeductionshomeIncomeRulesTax

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
ADVERTISEMENT

Related Posts

EPF, Section 80 CCD(2): How can a salaried employee save income tax under a new tax regime?
Tax News

EPF, Section 80 CCD(2): How can a salaried employee save income tax under a new tax regime?

March 26, 2023
KYC Update: Sebi asks investors to link PAN to Aadhaar before March 31, check details
Tax News

You will have to pay additional taxes if PAN is not linked to Aadhaar before March 31

March 25, 2023
The Tax and Customs Administration expects these 6 things from you
Tax News

The Tax and Customs Administration expects these 6 things from you

March 23, 2023
Exemptions under new tax regime 2023-24
Tax News

Exemptions under new tax regime 2023-24

March 23, 2023
Income Tax Documents List: What Do You Need to File ITR-1 Sahaj?
Tax News

Income Tax Documents List: What Do You Need to File ITR-1 Sahaj?

March 22, 2023
Income tax: how input tax is calculated and paid?
Tax News

How to save income tax on your salary?

March 22, 2023
ADVERTISEMENT
  • Trending
  • Comments
  • Latest
This optical illusion has a revelation about your brain and eyes

This optical illusion has a revelation about your brain and eyes

June 6, 2022
NDTV Coronavirus

Viral video: Chinese woman pinned down, Covid test carried out by force

May 5, 2022
NDTV News

TGIF Mood: Video of Bear Cub Dancing in the Forest Melts 2.5 Million Hearts

June 3, 2022
Hundreds In Sarees At UK

Hundreds of sarees at Britain’s Royal Ascot Horse Race to help Indian weavers

June 16, 2022
The shock of chopping up a Chanel bag

The shock of chopping up a Chanel bag

1
NDTV News

Watch: Researchers Discover the World’s Largest Factory in Australia

1
Skyrocketing global fuel prices threaten livelihoods and social stability

Skyrocketing global fuel prices threaten livelihoods and social stability

1
No Guns, No Dragons: Her Video Games Capture Private Moments

No Guns, No Dragons: Her Video Games Capture Private Moments

1
Ransomware attack to hurt sales at Sun Pharmaceutical

Ransomware attack to hurt sales at Sun Pharmaceutical

March 27, 2023
Grimes Changes Name Of Her And Elon Musk

Grimes changes the name of her and Elon Musk’s daughter from Exa Dark to…

March 27, 2023
More than 1,000 students have benefited from Delhi University's Fee Waiver Scheme so far: Official

More than 1,000 students have benefited from Delhi University’s Fee Waiver Scheme so far: Official

March 27, 2023
Putin announces tactical nuclear plan. Read the fine print.

Putin announces tactical nuclear plan. Read the fine print.

March 27, 2023
ADVERTISEMENT

Recent News

Ransomware attack to hurt sales at Sun Pharmaceutical

Ransomware attack to hurt sales at Sun Pharmaceutical

March 27, 2023
Grimes Changes Name Of Her And Elon Musk

Grimes changes the name of her and Elon Musk’s daughter from Exa Dark to…

March 27, 2023

Categories

  • Africa
  • Americas
  • art-design
  • Arts
  • Arts & Culture
  • Asia Pacific
  • Astrology News
  • books
  • Books News
  • Business
  • Cricket
  • Cryptocurrency
  • Dance
  • Dining and Wine
  • Economy
  • Education & Career
  • Entertainment
  • Europe
  • Fashion
  • Food
  • Football
  • Gadget
  • Gaming
  • Golf
  • Health
  • Hot News
  • India
  • Indians Abroad
  • Lifestyle
  • Markets
  • Middle East
  • Most Shared
  • Motorsport
  • Movie
  • Music
  • New York
  • Opinion
  • Politics
  • press release
  • Real Estate
  • Review
  • Science & Space
  • Sports
  • Sunday Book Review
  • Tax News
  • Technology
  • Television
  • Tennis
  • Theater
  • Top Movie Reviews
  • Top Stories
  • Travel
  • Uncategorized
  • Web Series
  • World

Site Navigation

  • Home
  • Advertisement
  • Contact Us
  • Privacy & Policy
  • Other Links

We bring you the Breaking News,Latest Stories,World News, Business News, Political News, Technology News, Science News, Entertainment News, Sports News, Opinion News and much more from all over the world

©Copyright DailyExpertNews 2023

No Result
View All Result
  • Contact Us
  • Home
  • Top Stories
  • World
  • Economy
  • Business
  • Opinion
  • Markets
  • India
  • Education & Career
  • Arts
  • Advertisement
  • Tax News
  • Markets

©Copyright DailyExpertNews 2023

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?