Section 80EEA for the Real Estate segment in the Indian Budget FY2019-20.
"Interest deduction up to Rs 3.5 Lakh. Right time to buy affordable houses."
"A person purchasing an affordable house will now get an enhanced interest deduction up to Rs. 3.5 lakh," Finance Minister Nirmala Sitharaman said while presenting her first Budget on July 5, 2019.
If you wish to buy a house for your own purpose and the house is less than Rs. 45 Lakh and you're borrowing using a bank loan for the house before March 31, 2020, and that being the only house in your name during the time of loan application, you can avail up to Rs.3.5 Lakh from the taxable income as deduction.
Earlier before this announcement the deductions were up to Rs.2 Lakhs under Section 24 of Income tax act, 1961. This additional incentive of Rs.1.5 Lakhs under Section 80EEA will help the common man to take the next step towards purchasing the affordable homes. This will inturn relax the burden on the interest payables bringing the monthly EMI lower than what it was in the previous years.
Properties such as Sreevatsa Urban Village start from Rs.22.4 lakhs making it the perfect time to avail such schemes. You can avail an additional Rs.1.5 Lakhs of investment for a stylish yet affordable class of an apartment just close to the Saravanampatti tech park.
Let's get to the basics:
There is a list of qualification criteria that will evaluate whether you can avail this benefit. The criteria are spread between the buyer of the house and the property itself. So, it's a team work. We shall find out if Sreevatsa's Urban Village and you as a team, will qualify these criteria?
|S.No||Qualification Criteria||Personal or Property||Tips|
|1.||The loan you're applying for the house should be applied and sanctioned between April 01, 2019 and March 31, 2020.||Personal||At Sreevatsa we have tied up with major bankers to help you avail the loan on time. If your documents are clear, then we will take care of the papers. Just sit back and relax, while your home is getting ready with all specialty, love and care.|
|2.||The stamp duty for the value of the house should not exceed Rs.45 Lakhs.||Property||Sreevatsa's Urban Village - compact luxury home starts from Rs.22.4 Lakhs. Criteria passed.|
|3.||The new property should be covered under the affordable housing category.||Property||The project falls within the criteria.|
|4.||The owner or the buyer of the property on whose name the house will be registered, should not own any residential property on the date of the application and sanction of the loan.||Personal||Only one house at a time and should be used only for personal use.|
|5.||Property shall be self-occupying only.||Personal||The purchased property shall be occupied only by the person who got the loan sanctioned|
A quick tip if you qualify in all the above criteria: Pick up your phone and set a reminder to include this benefit while filing the tax returns for the FY 2019-20.
The Section 80EEA, is proposed keeping in mind the demand and supply of the country's housing market. These schemes are helping the aspirations of people to afford, purchase, own and live in a dream house of their own. At Sreevatsa, we take pride in building homes at the IT hub of Coimbatore and provide a uber-luxury class amenities and life style for the mix of people with uncompromised quality and encompassing our value of trust.