Promoting Affordable Housing through deduction in respect of interest on loans : Clause 130 of the Income Tax bill, 2025 Vs. Section 80EE of the income Tax Act, 1961

Deduction for home loan interest offered to eligible first-time buyers under the new provision, subject to exclusivity and eligibility limits.

Clause 130 provides a capped deduction for interest on loans from defined financial institutions for acquisition of residential house property, limited to loans meeting prescribed sanctioning, loan-amount and property-value conditions and where the assessee did not own residential property at sanction. The clause includes clear definitions and an exclusivity rule preventing claiming similar deductions under other provisions.