Income Tax Calculator: In Budget 2021, Union Finance Minister Nirmala Sitharaman extended the income tax benefit under Section 80EED till March 31, 2022, which allowed first-time home buyers to claim income tax exemption up to a maximum of Rs. 1.50 lakh home loan interest payment in home loan EMI provided the value of the house property is below 45 lakhs. But, this benefit has not been extended in Budget 2022, which means first-time home buyers will have to pay more income tax from the next financial year. However, if a taxpayer is considering buying a house in a net financial year, he can avail this income tax benefit while filing income tax return in the next financial year. The home buyer needs to get his loan sanctioned in the current financial year and buy the house in the next financial year.
Speaking on how a home buyer can still avail income tax benefits under Section 80EED of the Income Tax Act, Balwant Jain, a Mumbai-based tax and investment expert said, “While filing ITR from the next financial year, a taxpayer can claim the income tax. Will not be able to claim tax benefit under section 80EED of Income Tax Act, as this benefit ends on 31st March 2022. However, if a taxpayer is considering to buy his dream home in the next financial year, he/she will have There is still a chance to avail this benefit of income tax exemption. 1.50 lakh home loan interest payments in a financial year.”
On how an income tax payer paying home loan EMI can claim the benefit in the next financial year, Balwant Jain said, “The benefit is still available till 31st March 2022. So, if a taxpayer is planning to move in the next financial year Buy your dream home, it has to apply for home loan now and get the sanction letter before the end of this financial year i.e. before 31st March 2022. On having the home loan sanction letter within the given period of benefit, a They will be able to claim income tax benefit even if they buy their house after some time, but within the given validity period of the sanctioned home loan.”
Balwant Jain said that this idea will only work for first time home buyers and the home property should be priced below 45 lakhs.
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