New rules of income tax: After entering the new financial year, many changes Income Tax Rules have been implemented from 1st April 2022. Flat 30 per cent tax on income from virtual asset investments, surcharge on LTCG are some of the major changes announced by the central finance. Minister Nirmala Sitharaman in Budget 2022. In this budget, he did not increase the additional income tax benefit being given to home loan borrowers under Section 80EEA. Hence, from 1st April 2022, first time home buyers will not be able to claim income tax benefit up to a maximum of Rs. 1.50 lakh home loan interest payment under section 80EEA of the Income Tax Act.
speaking on New Income Tax Rules from 1st April 2022, Balwant Jain, a Mumbai-based tax and investment expert said, “In FY23, a taxpayer will not be able to claim benefit under section 80EEA as this special benefit announced in the Union Budget 2019 has expired on March 31, 2022. Hence, now From this, first time home buyers will not be able to claim income tax benefit up to maximum 1.50 lakh home loan interest payments in a single financial year under section 80EEA.”
Speaking on Income Tax rules for home loan borrowers in FY 2023; Sujit Bangar, Founder, TaxBuddy.com said, “There is an additional deduction on home loan interest. 1.5 lakh on house properties worth less than 45 lakhs for first time home buyers. FM has not extended this scheme beyond 31st March 2022. Therefore, this additional deduction 1.5 lakh will not be available to the taxpayers from 1st April 2022. Other Existing Deductions on Home Loan Interest 2 lakh will continue under section 24 of the Income Tax Act.”
However, Balwant Jain said that first time home buyers who got home loan sanction letter before 1st April 2022 and their property value is less than 45 lakh, can still claim income tax benefit under section 80EEA.
“A home loan borrower can claim income tax benefit under section 80EEA, if he has a home loan sanctioned between 1st April 2019 to 31st March 2022. Therefore, if a new borrower has a home loan sanction letter by 31st March 2022 has received and he receives disbursements in the current financial year, he will be eligible to claim income tax benefit up to 1.50 lakh home loan interest paid in a financial year under section 80EEA.” Balwant Jain also said that the benefit under section 80EEA will be available for the entire tenure of the home loan.
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