80EE vs 80EEA: Know the Difference for Home Loan Deductions
Introduction
Sections 80EE and 80EEA of the Income Tax Act grant additional relief on Home Loan interest for first time buyers. This guide explains what each section allows, who is eligible, the time windows that apply and how to claim in your tax return without errors.
What is Section 80EE?
Section 80EE provides an additional deduction of up to ₹50,000 a year on interest paid for a residential Home Loan. It applies only to first time buyers who meet the specific loan and property limits and whose loans were sanctioned during the notified window in financial year 2016–17.
Also Read: Home Loan: All You Need to Know
Eligibility and key conditions
- Individual taxpayer only
- You must not own any other residential property on the date of loan sanction
- Loan must be sanctioned between 1 April 2016 and 31 March 2017
- Property value must not exceed ₹50 lakh
- Loan amount must not exceed ₹35 lakh
- Loan must be from a bank or housing finance company
- Deduction is in addition to Section 24(b) and is available under the old tax regime
What is Section 80EEA?
Section 80EEA, introduced in Budget 2019, allows an additional deduction of up to ₹1.5 lakh a year on interest paid for an affordable residential house. It applies to first time buyers for loans sanctioned from 1 April 2019 to 31 March 2022 where the stamp duty value of the property does not exceed ₹45 lakh and the taxpayer is not eligible under Section 80EE.
Also Read: Stamp Duty and Registration Charges (2025)
Eligibility and key conditions
- Individual taxpayer only
- You must not own any residential house on the date of loan sanction
- Loan must be sanctioned between 1 April 2019 and 31 March 2022
- Stamp duty value of the property must not exceed ₹45 lakh
- Loan must be from a financial institution or housing finance company
- Deduction is in addition to Section 24(b) and is available under the old tax regime
- You cannot claim 80EE and 80EEA for the same loan
Key Differences Between Section 80EE and 80EEA
| Feature | Section 80EE | Section 80EEA |
| Maximum additional deduction | ₹50,000 a year | ₹1,50,000 a year |
| Loan sanction window | 1 Apr 2016 to 31 Mar 2017 | 1 Apr 2019 to 31 Mar 2022 |
| Property threshold | Property value ≤ ₹50 lakh | Stamp duty value ≤ ₹45 lakh |
| First time buyer condition | Must not own any house at sanction date | Must not own any house at sanction date |
| Mutual exclusivity | Can be claimed only if 80EEA not claimed | Available only if not eligible under 80EE |
| Tax regime | Old regime only | Old regime only |
Eligibility Criteria for Sections 80EE and 80EEA
Section 80EE: checklist
- Individual taxpayer only
- You must not own any other residential property on the date of loan sanction
- Loan must be sanctioned between 1 April 2016 and 31 March 2017
- Property value must not exceed ₹50 lakh
- Loan amount must not exceed ₹35 lakh
- Loan must be from a bank or housing finance company
- Deduction is in addition to Section 24(b) and is available under the old tax regime
Section 80EEA: checklist
- Individual taxpayer only
- You must not own any residential house on the date of loan sanction
- Loan must be sanctioned between 1 April 2019 and 31 March 2022
- Stamp duty value of the property must not exceed ₹45 lakh
- Loan must be from a financial institution or housing finance company
- Deduction is in addition to Section 24(b) and is available under the old tax regime
- You cannot claim 80EE and 80EEA for the same loan
How to Claim Tax Deductions under Sections 80EE and 80EEA
- Obtain the annual Home Loan interest certificate from your bank or housing finance company
- Verify the loan sanction date and property thresholds against the relevant section
- Ensure you are under the old tax regime if you intend to claim these sections
- Claim up to ₹2 lakh under Section 24(b) for self occupied property and then add the eligible amount under 80EE or 80EEA
- Report the deduction in your Income Tax Return under the appropriate schedule and keep documents for assessment
Can You Claim Both Section 80EE and 80EEA Deductions Together?
No. Section 80EEA expressly applies where the individual is not eligible under Section 80EE. You may combine either 80EE or 80EEA with Section 24(b) interest deduction, subject to their respective limits and conditions.
Important Terms to Know for Claiming Sections 80EE and 80EEA
Stamp Duty Value: Value adopted or assessed for stamp duty purposes by the authority for an immovable property.
Financial Institution: A bank or housing finance company from which the loan is sanctioned. Many NBFC such as Godrej Capital also offer Home Loan EMI Calculator that can help you to plan long-term finances.
First Time Homebuyer: An individual who does not own any residential house property on the date of loan sanction.
Old Tax Regime: The regime that allows itemised deductions and exemptions including Sections 24(b), 80EE and 80EEA
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FAQs
Q.1. Can I claim Section 80EE deduction if my property value exceeds ₹50 lakh?
A. No. Section 80EE requires the property value to be ₹50 lakh or less and the loan to be ₹35 lakh or less.
Q.2. Is Section 80EEA applicable for under construction properties?
A. Yes, if the loan meets the sanction window and stamp duty value limit and you do not own another house on the sanction date. Keep possession and registration timelines documented.
Q.3. What documents are mandatory when claiming deductions under Section 80EEA?
A. Loan sanction letter, annual interest certificate, property documents showing stamp duty value and your ownership details.
Q.4. How many years can I claim deductions under Section 80EE and 80EEA?
A. You may claim in each year for interest actually paid, provided the original eligibility conditions continue to be satisfied.
Q.5. Does Section 80EEA have carpet area limits for properties outside metro cities?
A. Affordable housing carpet area limits are referenced in policy memoranda, but they are not part of the section’s text. Focus on stamp duty value and loan dates for eligibility.
Disclaimer:
The content presented on this page, including images and factual information, is intended solely as a summary derived from publicly available sources. GHFL/GFL (“Company”) does not claim ownership of such information, nor does it represent that the Companies have exclusive knowledge of the same. While efforts are made to ensure accuracy, there may be inadvertent errors, omissions, or delays in updating the content. Users are strongly encouraged to independently verify all information and seek expert advice where necessary. Any decisions made based on this content are solely at the discretion and responsibility of the user. Godrej Capital and its affiliates assume no responsibility for any loss or damage that may result from the use of or reliance on the information provided herein.
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