Budget 2021-22 + FINANCE Bill, 2021

Extension of date of sanction of loan for affordable residential house property

The existing provision of the section 80EEA of the Act, inter alia, provides a deduction in respect of interest on loan taken for a residential house property from any financial institution up to one lakh fifty-thousand rupees subject to the condition that the loan has been sanctioned during the period beginning on 1st April, 2019 and ending on 31st March, 2021. There are further conditions that the stamp duty value of residential house property does not exceed forty-five lakh rupees and the assessee does not own any residential house property on the date of sanction of loan. This provision allows deduction to the first time home buyers, in respect of interest on home loan. In order to help such first time home buyers further, it is proposed to amend the provision of section 80EEA of the Act to extend the outer date for sanction of loan from 31st March 2021 to 31st March 2022.

This amendment will take effect from 1st April, 2022 and will accordingly apply to the assessment year 2022-23 and subsequent assessment years.

[Clause 24]

 

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Full Text:

Budget 2021-22 + FINANCE Bill, 2021

Interest deduction for affordable home loans extended to cover loans sanctioned within the revised outer date, effective for assessment year 2022 23. The amendment extends the outer sanction date for loans eligible for the interest deduction for affordable residential house property while retaining existing conditions: availability to first time home buyers, limitation to interest on loans from financial institutions, and a cap on the stamp duty value of the property. The extension allows loans sanctioned within the revised period to qualify and takes effect from 1 April 2022, applying to the corresponding assessment year.