New revenue tax guidelines from 1st April 2022 for house mortgage debtors — defined

New revenue tax guidelines: After ushering into new monetary yr, a variety of adjustments revenue tax guidelines have been carried out from 1st April 2022. Imposition of flat 30 per cent tax on revenue from digital asset funding, surcharge on LTCG are a number of the main adjustments introduced by the Union Finance Minister Nirmala Sitharaman in funds 2022. In this funds, she did not prolonged the extra revenue tax profit being given to the house mortgage debtors underneath Section 80EEA. So, from 1st April 2022, first time house patrons will not have the ability to declare revenue tax profit on as much as ₹1.50 lakh house mortgage curiosity cost underneath Section 80EEA of the Income Tax Act.

Speaking on the brand new revenue tax guidelines from 1st April 2022; Mumbai-based tax and funding professional Balwant Jain mentioned, “In FY23, a taxpayer won’t be able to claim benefit under Section 80EEA as this special benefit announced in Union Budget 2019 has ended on 31st March 2022. So, from now onward, first time home buyers won’t be able to claim income tax benefit on up to ₹1.50 lakh home loan interest payment in single financial year under Section 80EEA.”

Speaking on revenue tax guidelines for house mortgage debtors in FY 2023; Sujit Bangar, Founder at Taxbuddy.com mentioned, “There was an additional deduction on home loan interest up to ₹1.5 Lakh on house properties valued less than ₹45 Lakh for first time home buyers. FM has not extended this scheme beyond 31st March 2022. Therefore, this additional deduction of ₹1.5 Lakh won’t be available to tax payers from 1st April 2022. Other existing deduction on account of home loan interest up to ₹2 Lakh would be continued under Section 24 of Income Tax Act.”

However, Balwant Jain mentioned that these first time house patrons who have gotten house mortgage sanction letter earlier than 1st April 2022 and their property worth is lower than ₹45 lakh, can nonetheless declare revenue tax profit underneath Section 80EEA.

“A home loan borrower can claim income tax benefit under Section 80 EEA, if it has a home loan sanctioned in between 1st April 2019 to 31st March 2022. So, if a new borrower has received home loan sanction letter by 31st March 2022 and gets disbursal in current fiscal, he or she will be eligible to claim income tax benefit on up to ₹1.50 lakh home loan interest paid in one financial year under Section 80EEA.” Balwant Jain additionally mentioned that the profit underneath Section 80EEA can be obtainable for total tenure of the house mortgage.

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