Download All in One TDS on Salary for FY 2014-15 for Non-Govt employees [This Excel utility can prepare at a time Tax Calculation + Tax Compute Sheet + Individual Salary Structure + Automatic HRA Calculation + Automated Form 16 Part A&B and Form 16 Part B + Form 12 BA for FY 2014-15]
First time individual home buyers can get tax deduction on interest of home loan, under newly inserted section 80EE of the Income Tax Act, applicable for assessment year 2014-15. This is in addition to tax rebate on interest payment of home loan, under section 24.
Eligibility for 80EE rebate. This rebate on home loan interest is applicable only for home loans satisfying the following conditions:
i. Loan is sanctioned by a financial institution or housing finance company between 1st April 2013 and 31st March 2014.
ii. Loan amount is Rs 25 lakhs or less and cost of residential house is Rs 40 lakhs or less
This should be the only house owned by the taxpayer at the time of sanction.
Maximum deduction limit under 80EE
Up to Rs 1 lakh can be claimed towards interest payable on home loan in the financial year 2013-14. If interest payable in this year is less than Rs 1 lakh then the balance can be claimed in the following year.
For instance if interest payable in FY 2013-14 is Rs 75,000 then tax rebate on remaining Rs 25,000 can be claimed in FY 2014-15.
The amount claimed under 80EE cannot be claimed for tax rebate under any other sections in any year.
How to get 80EE tax benefit
You can either produce certificate from your lender to the HR and get deduction on salary TDS or you can deduct the amount from total income while filing income tax return.