80EE. Deduction in respect of interest on loan taken for residential house property.
(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 acquisi tion 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 subseque nt 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 31 st 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 ins titution 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.]