Home Loan Tax Benefits

Difference Between Section 80EE and 80EEA Explained

Owning a home is a dream for many, and to make that dream affordable, the Indian government provides several tax benefits on home loans under the Income Tax Act. While most people are aware of Section 24(b) and Section 80C, many overlook the additional deductions available under Section 80EE and Section 80EEA.

Both these sections offer extra tax benefits on the interest component of home loan EMIs, but they have different eligibility criteria and conditions. In this blog, we will clearly explain the difference between Section 80EE and 80EEA, and how you can take advantage of them while filing your taxes in FY 2025–26 (AY 2026–27).

🏡 Section 80EE – Overview

Section 80EE offers an additional deduction of up to ₹50,000 on interest paid on home loans for first-time homebuyers.

Key Features:

• Maximum deduction: ₹50,000 per year

• Over and above the ₹2 lakh limit under Section 24(b)

• Applicable only to individual taxpayers

• Property value must not exceed ₹50 lakh

• Loan amount must not exceed ₹35 lakh

• Loan must be sanctioned between 1st April 2016 and 31st March 2017

• The taxpayer must not own any other residential property on the date of loan sanction

👉 Current Status: This section is not applicable for loans sanctioned after 31st March 2017, but those who meet the criteria can still continue to claim it.

🏠 Section 80EEA – Overview

Section 80EEA was introduced in Budget 2019 to extend the home loan benefits for affordable housing and boost real estate demand.

Key Features:

• Maximum deduction: ₹1,50,000 per year on interest

• Over and above the ₹2 lakh deduction under Section 24(b)

• Only for individual taxpayers

• Stamp duty value of the property must not exceed ₹45 lakh

• Loan must be sanctioned between 1st April 2019 and 31st March 2022

• The buyer should be a first-time homeowner

• Taxpayer should not claim deduction under Section 80EE

👉 Current Status: No new loans after 31st March 2022 are eligible. However, taxpayers with eligible loans can still claim deductions in FY 2025–26.

🔍 Key Differences Between Section 80EE and 80EEA

💡 Pro Tip: Combine with Section 24(b)

Both 80EE and 80EEA offer deductions in addition to the ₹2 lakh interest deduction available under Section 24(b). So eligible taxpayers can potentially claim:

• ₹2,00,000 under Section 24(b)

• ₹50,000 under Section 80EE
  or

• ₹1,50,000 under Section 80EEA

This helps in maximizing total tax savings up to ₹3.5 lakh per year on home loan interest.

Frequently Asked Questions