A bonus for affordable housing
If you bought your first home, the standard ₹2 lakh interest deduction under Section 24b may not cover all your interest. To push affordable housing, the government added Section 80EEA under the Old Regime — an extra interest deduction on top of 24b.
The extra number
Section 80EEA gives an additional deduction of up to ₹1,50,000 on home loan interest, over and above Section 24b (Source: Section 80EEA, Income Tax Act).
| Section | Interest deduction |
|---|---|
| 24b | ₹2,00,000 |
| 80EEA | ₹1,50,000 (extra) |
| Combined possible | ₹3,50,000 |
Do you qualify?
The conditions are strict — all must hold:
- First-time buyer: you owned no other residential house on the loan-sanction date.
- Sanction window: the loan was sanctioned between 1 April 2019 and 31 March 2022.
- Property value: stamp duty value is ₹45 lakh or less.
- Carpet area: up to 60 sq m in metros, 90 sq m in non-metros.
How it works
Exhaust the ₹2 lakh under 24b first, then claim the rest under 80EEA. If you paid ₹2.8 lakh interest this year:
- ₹2,00,000 under Section 24b
- ₹80,000 under Section 80EEA
What you should do
- Check your loan sanction letter date against the 2019-2022 window.
- Confirm the stamp duty value was ₹45 lakh or less.
- Always fill 24b first, then route the balance to 80EEA.
Common mistake
Assuming a recent loan qualifies. The sanction window closed on 31 March 2022. Loans sanctioned later cannot claim 80EEA, no matter how affordable the home.
How LastMinute ITR helps
Many people forget 80EEA because the window has closed for new loans. LastMinute ITR checks your sanction date and property value, applies 80EEA in your deductions if you qualify, and compares regimes. You file and e-verify on incometax.gov.in.