Section 80EE of Income Tax Act "Deduction in respect of interest on loan taken for residential house property"
80EE. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential property.
(2) The deduction under sub-section (1) shall not exceed
fifty thousand rupees and shall be allowed in computing the
total income of the individual for the assessment year
beginning on the 1st day of April, 2017 and subsequent
assessment years.
(3) The deduction under sub-section (1) shall be subject to
the following conditions, namely:-
(i) the loan has been sanctioned by the financial
institution during the period beginning on the 1st day of
April, 2016 and ending on the 31st day of March, 2017;
(ii) the amount of loan sanctioned for acquisition of the
residential house property does not exceed thirty-five lakh
rupees;
(iii) the value of residential house property does not
exceed fifty lakh rupees;
(iv) the assessee does not own any residential house
property on the date of sanction of loan.
(4) Where a deduction under this section is allowed for any
interest referred to in sub-section (1), deduction shall not
be allowed in respect of such interest under any other
provision of this Act for the same or any other assessment
year.
(5) For the purposes of this section,-
(a) "financial institution" means a banking company to which
the Banking Regulation Act, 1949 (10 of 1949) applies, or
any bank or banking institution referred to in section 51 of
that Act or a housing finance company;
(b) "housing finance company" means a public company formed
or registered in India with the main object of carrying on
the business of providing long-term finance for construction
or purchase of houses in India for residential purposes.