{"id":11619,"date":"2020-01-13T16:00:42","date_gmt":"2020-01-13T10:30:42","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=11619"},"modified":"2020-02-01T16:56:36","modified_gmt":"2020-02-01T11:26:36","slug":"80eea-tax-home-loan","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/80eea-tax-home-loan\/","title":{"rendered":"80EEA \u2013 New Tax Exemption on Loan for Purchase of Affordable House"},"content":{"rendered":"\n<p style=\"text-align: justify;\">A new section 80EEA has been introduced in the Budget 2019 (July) which would give additional tax exemption on loans taken for purchase of affordable house. We give you the details of the same in the post.<\/p>\n<h2 style=\"text-align: justify;\">80EEA \u2013 Eligibility &amp; other Details<\/h2>\n<p style=\"text-align: justify;\">You would be eligible for the benefit <strong>u\/s 80EEA<\/strong> if you satisfy following conditions:<\/p>\n<ol>\n<li style=\"text-align: justify;\">The home <strong>loan is taken<\/strong> from approved financial institutions between <strong>April 1, 2019 to <\/strong><del>March 31, 2020<\/del><strong> [March 31, 2021 &#8211; extended in Budget 2020]<\/strong><\/li>\n<li style=\"text-align: justify;\">The <strong>stamp value of house is less than Rs 45 Lakhs<\/strong><\/li>\n<li style=\"text-align: justify;\">The <strong>buyer should not have any other house<\/strong> in his name at the time of loan sanction<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">Total deduction on interest on housing loan would be Rs 3.5 lakh (2 lakh u\/s 24 &amp; 1.5 lakh u\/s 80EEA)<\/p>\n<blockquote>\n<p><strong>Also Read:<\/strong> <a href=\"https:\/\/www.apnaplan.com\/tax-benefit-both-hra-home-loan\/\">Can I claim Tax Benefit on both HRA &amp; Home Loan?<\/a><\/p>\n<\/blockquote>\n<h2 style=\"text-align: justify;\">Affordable Housing<\/h2>\n<p style=\"text-align: justify;\">Government defines affordable housing as:<\/p>\n<ul>\n<li style=\"text-align: justify;\">Houses with area less than 60 sq. mt. 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)<\/li>\n<li style=\"text-align: justify;\">Houses with area less than 90 sq. mt. in all cities other than metropolitan cities<\/li>\n<li style=\"text-align: justify;\">The stamp value of house should be less than Rs 45 Lakhs<\/li>\n<\/ul>\n<figure id=\"attachment_11621\" aria-describedby=\"caption-attachment-11621\" style=\"width: 1010px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11621\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes.png\" alt=\"Additional Tax Exemption on Loan for Purchase of Affordable Homes\" width=\"1010\" height=\"553\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes.png 1010w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes-300x164.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes-768x420.png 768w\" sizes=\"(max-width: 1010px) 100vw, 1010px\" \/><figcaption id=\"caption-attachment-11621\" class=\"wp-caption-text\"><strong>Section 80EEA &#8211; Additional Tax Exemption on Loan for Purchase of Affordable Homes<\/strong><\/figcaption><\/figure>\n<blockquote>\n<p><strong data-rich-text-format-boundary=\"true\">Download:<\/strong> <a href=\"https:\/\/www.apnaplan.com\/income-tax-calculator-fy-2019-20-ay-2020-21-excel-download\/\">Income Tax Calculator for FY 2019-20 [AY 2020-21]<\/a><\/p>\n<\/blockquote>\n<h2 style=\"text-align: justify;\">How much Additional Tax you save?<\/h2>\n<p style=\"text-align: justify;\">We take a case which can tell you how much additional tax you would save with the new section.<\/p>\n<ul>\n<li style=\"text-align: justify;\">Property Purchase Value = Rs 45 Lakhs<\/li>\n<li style=\"text-align: justify;\">Loan (80% to 85% of Property value) = Rs 36 to 38 Lakhs<\/li>\n<li style=\"text-align: justify;\">For our calculation we would take higher value of Rs 38 lakhs<\/li>\n<li style=\"text-align: justify;\">Interest Rate = 9%<\/li>\n<li style=\"text-align: justify;\">Loan Tenure = 15 years<\/li>\n<li style=\"text-align: justify;\">EMI = Rs 38,542<\/li>\n<\/ul>\n<p>The table below shows the additional tax you would save with the new Section EEA.<\/p>\n<table width=\"688\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" width=\"36\"><strong>Year<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"87\"><strong>Annual EMI<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"74\"><strong>Principal Paid\u00a0<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"74\"><strong>Interest Paid<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"126\"><strong>Tax Exemption u\/s 24<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"153\"><span style=\"color: #008000;\"><strong>Tax Exemption u\/s 80EEA<\/strong><\/span><\/td>\n<td style=\"text-align: center;\" width=\"74\"><strong>Tax Saved @ 20.80%<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"64\"><strong>Tax Saved @ 31.20%<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">1<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">125,603<\/td>\n<td style=\"text-align: center;\">336,901<\/td>\n<td style=\"text-align: center;\">200,000<\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\">136,901<\/span><\/td>\n<td style=\"text-align: center;\">28,475<\/td>\n<td style=\"text-align: center;\">42,713<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">2<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">137,385<\/td>\n<td style=\"text-align: center;\">325,119<\/td>\n<td style=\"text-align: center;\">200,000<\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\">125,119<\/span><\/td>\n<td style=\"text-align: center;\">26,025<\/td>\n<td style=\"text-align: center;\">39,037<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">3<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">150,273<\/td>\n<td style=\"text-align: center;\">312,231<\/td>\n<td style=\"text-align: center;\">200,000<\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\">112,231<\/span><\/td>\n<td style=\"text-align: center;\">23,344<\/td>\n<td style=\"text-align: center;\">35,016<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">4<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">164,370<\/td>\n<td style=\"text-align: center;\">298,134<\/td>\n<td style=\"text-align: center;\">200,000<\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\">98,134<\/span><\/td>\n<td style=\"text-align: center;\">20,412<\/td>\n<td style=\"text-align: center;\">30,618<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">5<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">179,789<\/td>\n<td style=\"text-align: center;\">282,715<\/td>\n<td style=\"text-align: center;\">200,000<\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\">82,715<\/span><\/td>\n<td style=\"text-align: center;\">17,205<\/td>\n<td style=\"text-align: center;\">25,807<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">6<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">196,654<\/td>\n<td style=\"text-align: center;\">265,850<\/td>\n<td style=\"text-align: center;\">200,000<\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\">65,850<\/span><\/td>\n<td style=\"text-align: center;\">13,697<\/td>\n<td style=\"text-align: center;\">20,545<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">7<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">215,101<\/td>\n<td style=\"text-align: center;\">247,403<\/td>\n<td style=\"text-align: center;\">200,000<\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\">47,403<\/span><\/td>\n<td style=\"text-align: center;\">9,860<\/td>\n<td style=\"text-align: center;\">14,790<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">8<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">235,279<\/td>\n<td style=\"text-align: center;\">227,225<\/td>\n<td style=\"text-align: center;\">200,000<\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\">27,225<\/span><\/td>\n<td style=\"text-align: center;\">5,663<\/td>\n<td style=\"text-align: center;\">8,494<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">9<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">257,350<\/td>\n<td style=\"text-align: center;\">205,154<\/td>\n<td style=\"text-align: center;\">200,000<\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\">5,154<\/span><\/td>\n<td style=\"text-align: center;\">1,072<\/td>\n<td style=\"text-align: center;\">1,608<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">10<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">281,491<\/td>\n<td style=\"text-align: center;\">181,013<\/td>\n<td style=\"text-align: center;\">181,013<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">11<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">307,897<\/td>\n<td style=\"text-align: center;\">154,607<\/td>\n<td style=\"text-align: center;\">154,607<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">12<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">336,780<\/td>\n<td style=\"text-align: center;\">125,724<\/td>\n<td style=\"text-align: center;\">125,724<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">13<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">368,373<\/td>\n<td style=\"text-align: center;\">94,131<\/td>\n<td style=\"text-align: center;\">94,131<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">14<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">402,928<\/td>\n<td style=\"text-align: center;\">59,576<\/td>\n<td style=\"text-align: center;\">59,576<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">15<\/td>\n<td style=\"text-align: center;\">462,504<\/td>\n<td style=\"text-align: center;\">440,726<\/td>\n<td style=\"text-align: center;\">21,778<\/td>\n<td style=\"text-align: center;\">21,778<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<td style=\"text-align: center;\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><strong>Total<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>6,937,560<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>3,800,000<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>3,137,560<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>2,436,828<\/strong><\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\"><strong>700,732<\/strong><\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\"><strong>145,752<\/strong><\/span><\/td>\n<td style=\"text-align: center;\"><span style=\"color: #008000;\"><strong>218,628<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><strong>In 9 years, the tax exemption would be close to Rs 7 Lakh<\/strong> <em>(this was mentioned by finance minister in her Budget speech)<\/em><\/p>\n<p style=\"text-align: justify;\"><strong>For 20% tax bucket the tax saved would be Rs 1.46 lakhs while for 30% tax bucket the tax saved is Rs 2.19 lakhs over 7 years.<\/strong><\/p>\n<p style=\"text-align: justify;\">The <strong>new Section 80EEA is good move and help people to buy affordable homes<\/strong>. However, the limit of Rs 45 lakh needs further enhancement as you may not find anything in metropolitan areas.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section 80EEA would give additional tax exemption of 1.5 lakh on home loan taken for purchase of affordable house \ud83c\udfe0\ud83c\udfe1\ud83c\udfd8\ufe0f\ud83c\udfda\ufe0f\ud83c\udfe2.  This together with Rs 2 lakh exemption u\/s24 would take home loan interest exemption to Rs 3.5 lakh<\/p>\n","protected":false},"author":1,"featured_media":11621,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[480,3814,22,37,3013,7,63,6],"tags":[1781,3938],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes.png",1010,553,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes-300x164.png",300,164,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes-768x420.png",768,420,true],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes.png",1010,553,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes.png",1010,553,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes.png",1010,553,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/07\/Additional-Tax-Exemption-on-Loan-for-Purchase-of-Affordable-Homes.png",120,66,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"Section 80EEA would give additional tax exemption of 1.5 lakh on home loan taken for purchase of affordable house \ud83c\udfe0\ud83c\udfe1\ud83c\udfd8\ufe0f\ud83c\udfda\ufe0f\ud83c\udfe2. This together with Rs 2 lakh exemption u\/s24 would take home loan interest exemption to Rs 3.5 lakh","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/11619"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=11619"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/11619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/11621"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=11619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=11619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=11619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}