If you are a first time home buyer, you can claim income tax benefit under Section 80EE of Income Tax Act. You can claim income tax deduction on home loan interest paid. But the amount allowed for deduction is up to maximum Rs 50,000 per financial year under this Section. The deductions can be claimed until you have fully repaid the loan.
The deduction under Section 80EE is available only to individuals. Other tax payers such as HUF, AOP, Company or any others can't claim the benefit under this section.
The deduction under Section 80EE is over and above the Rs 2 lakhs limit under the Section 24 of the Income Tax Act.
The government has set several conditions that you must satisfy before you go on to claim the benefit under Section 80EE, for example:
* It should be the first house you have purchased
