Do section 24 and section 80 EE of Income tax act, are same? or can be claimed both?

This deduction will be over and above the deduction of Rs 150,000 allowed for self-occupied properties under section 24 of the Income-tax Act”.

However when the Act was formulated the section 80EE(4) states “Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provisions of the Act for the same or any other assessment year”.

Let us look briefly at Section 24(b) and what does it say-
Tax payer shall be allowed deduction up to Rs 1,50,000 for interest on borrowed capital when these 3 conditions are fulfilled-

Capital is borrowed for acquiring or constructing a property after 01.04.1999

  • Acquisition or Construction is completed within 3 years from the end of the financial year in which capital is borrowed
  • The person extending the loan certifies that interest is payable towardsloan for acquisition or construction

The pre- construction interest can also be allowed as deduction in five equal installments beginning the year in which the property is acquired or constructed (however this is subject to the overall limit of Rs 1,50,000).

The Government intended to give this benefit in Section 80EE to the lower income group who are purchasing their first house, if you are able to satisfy conditions of both Section 24 and Section 80EE, both the benefits shall apply to you. First exhaust your limit under section 24 and then go on to claim the additional benefit under section 80EE.

 

 

 

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