Section 80EE allows tax benefits for first time home buyers. Income tax deduction can be claimed on home loan interest.The deduction allowed under this section is for interest paid on home loan up to maximum Rs 50,000 per financial year. You can claim this deduction until you have fully repaid the loan.
Besides, being an Individual Taxpayer, there are a set of conditions that you must satisfy before you go on to claim the benefit under this section –
Section 80EE was introduced effective 2013-14 and was available for 2 years, FY 2013-14 and FY 2014-15 only .The deduction allowed earlier was limited to maximum Rs 1lakh in total and was available for only 2 financial years.
However, this section has been reintroduced effective FY 2016-17 (assessment year 2017-18).Now the deduction is allowed up to Rs 50,000 per year starting from FY 2016-17 and subsequent years until the loan is repaid.
The Section does not specify if you need to be Resident to be able to claim this benefit, therefore it can be concluded that both Resident and Non Resident Indians can claim this deduction. The Section also does not specify if this house should be self occupied to claim the deduction.
If you are able to satisfy conditions of both Section 24 and Section 80EE, both the benefits shall apply to you. First exhaust your limit under section 24 and then go on to claim the additional benefit under section 80EE. Therefore, this deduction is in addition to Rs 2 lakhs limit under section 24.