Section 80EEA of Income Tax Act
Under Section 80EEA to claimed by first-time home buyers for the amount they pay as interest on home loan.
The maximum deduction under this section is Rs. 1,50,000 during a financial year. It is over and above the Rs 2 lakh limit under Section 24(b) of the Income Tax Act. You can continue to claim this deduction until you have fully repaid the loan.
The tax benefit is not available for loans on commercial property for commercial businesses.
It is applicable only an Old Regime.
Conditions to be Claiming Deduction :Stamp duty value of the house property should be Rs 45 lakh or less.
The loan must be sanctioned by a financial institution or a housing finance company for buying a residential house property.
The loan should be sanctioned during the period 1st April 2019 and 31st March 2022.
The individual taxpayer should not be eligible to claim a deduction under the existing Section 80EE.
As of the date of the sanction of the loan, no other house property must be owned by you.
Conditions with respect to the carpet area of the house property. These conditions have been specified in the memorandum to the finance bill, but not mentioned in section 80EEA ::The carpet area of the house property should not exceed 60 square meter ( 645 sq ft) in metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region)
Carpet area should not exceed 90 square meter (968 sq ft) in any other cities or towns.