Income tax calculator: How to assert part 80EED profit shopping for dwelling in FY23

Income tax calculator: In Budget 2021, Union Finance Minister Nirmala Sitharaman had prolonged revenue tax profit underneath Section 80EED until thirty first March 2022 that allowed first time dwelling patrons to assert revenue tax exemption on as much as ₹1.50 lakh dwelling mortgage curiosity cost in a single’s dwelling mortgage EMI, supplied the home property is priced beneath ₹45 lakh. But, this profit hasn’t been prolonged in Budget 2022 which means new first time dwelling patrons must pay extra revenue tax from subsequent monetary yr. However, if a taxpayer is mulling to purchase dwelling in web monetary yr, she or he can nonetheless avail this revenue tax profit whereas submitting one’s revenue tax return in subsequent fiscal. What the house purchaser want is to get its mortgage authorized in present monetary yr and purchase dwelling in subsequent monetary yr.

Speaking on how a house purchaser can nonetheless avail revenue tax profit underneath Section 80EED of the revenue tax act, Mumbai-based tax and funding knowledgeable Balwant Jain mentioned, “While ITR filing from next fiscal, a taxpayer won’t be able to claim income tax benefit under Section 80EED of the income tax act as this benefit ends on 31st March 2022. However, in case, a taxpayer is mulling to buy its dream home next fiscal, it still has a chance to avail this benefit of income tax exemption on ₹1.50 lakh home loan interest payment in one financial year.”

On how an revenue tax payee repaying dwelling mortgage EMI can declare the profit subsequent monetary yr, when the profit ends in present fiscal yr, Balwant Jain mentioned, “The benefit is still available till 31st March 2022. So, if a taxpayer is planning to buy its dream home in next financial year, it needs to apply for a home loan right now and get sanction letter before the end of this financial year i.e. before 31st March 2022. Having home loan sanction letter within the given period of the benefit, one would be able to claim income tax benefit even if they buy their home after some time but within the given validity period of the approved home loan.”

Balwant Jain mentioned that the thought would work for first time dwelling patrons solely and the home property worth must be beneath ₹45 lakh.

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