1. Features of the Deduction
- The deduction under this section is available only to individuals. This means, if you are an HUF, AOP, Company or any other kind of tax payer, you cannot claim the benefit under this section.
- This deduction is over and above the Rs 2 lakhs limit under section 24 of the income tax act. Read more about deduction of Rs 2 lakhs on interest on home loan here.
2. Conditions to be Met for Claiming Deduction
- This is the 1st house you have purchased
- Value of this house is Rs 50 lakhs or less
- Loan taken for this house is Rs 35 lakhs or less
- Loan has been sanctioned by a Financial Institution or a Housing Finance Company
- Loan has been sanctioned between 01.04.2016 to 31.03.2017
- As on the date of sanction of loan no other house is owned by you