The additional tax deduction available for affordable housing under section 80EEA will not be available, from 1 April 2022, as government has not announced to extend this tax break for financial year 2022-23.
Aiming to boost the affordable housing demand, Finance Minister Nirmala Sitharaman had extended in the last year’s Budget the date of availing an additional Rs 1.5 lakh tax deduction on home loan interest taken during the period between 1 April 2019 and 31 March 2022.
The additional deduction of Rs 1.5 lakh over and above Rs 2 lakh was introduced in 2019 year’s budget. This was allowed for those buying homes for the first time and of up to Rs 45 lakh and made applicable for home loans sanctioned till March 2020 which was later extended to March 2022.
The real estate industry, facing a huge demand slowdown and sluggish housing sales, had sought extension of this additional deduction, but wanted the price cap of Rs 45 lakh to be enhanced.