Section 80EE: Additional Interest Deduction on House Property Loan

Finance Minister presented Union Budget 2013-14 in parliament. In the Union Budget 2013-14 a new Section 80EE inserted in Indian Income Tax, 1961 for additional deduction of interest on housing loan. An assessee able to take additional interest deduction on housing loan from Assessment Year 2014-15

Additional Interest deduction on house property loan will be allowed on only to new loan sanctioned for house property. The loan sanctioned for house property does not exceed from 25 lakhs. Loan has been sectioned from 01-04-2013 to 31-03-2014. If the loan has been sanctioned before 01 April, 2013 than assessee not able to take benefit of Section 80EE of India Income Tax, 1961

A Brief Summary:

1. Loan has been sanctioned for house by any financial institutions from 01 April, 2013 to 31 March, 2014.

2. Loan amount sanctioned for acquisitions house property does not exceed Rs. 25 Lacs.

3. There are no other house property on the date of sanction housing loan to assessee.

4. Value of house property not exceed of Rs. 40 lacs.

5. Buyer of house property is the first time buyer.

Note: - This is a brief disclosure on Addition Interest Deduction House Property Loan under Section 80EE and under Section 24 (b) of India Income Tax Act, 1961.

Section 194-IA : TDS on purchase of Immovable Properties

Tax Deduction at Source (TDS) on transfer of certain immovable properties (other than agricultural land) for value Exceeding Rs.50 Lakhs.

The Finance Bill 2013 has introduced a new section 194-IA providing for TDS @ 1% to be deducted by purchaser. In case valid PAN of seller is not available , tax deduction will be at higher rate of 20%. This amendment is effective from 1st June, 2013. 

For reducing the further compliance burden on the transferee, it is also provided that a simple one 

page challan for payment of TDS would be provided containing details (including PAN) of transferor and transferee  and also certain details of the property. The transferee would not be required to obtain any Tax Deduction and Collection Account Number (TAN) or to furnish any TDS statement as this would be mostly a one-time transaction. 

The transferor would get credit of TDS like any other pre-paid taxes on the basis of information furnished by the transferee in the challan of payment of TDS. 

The New Payment Challan for TDS requires the Property Purchaser to Furnish following details in the form for payment of TDS :- 

·         Permanent Account No. (PAN) of Transferee (Payer/Buyer) 

·         Permanent Account No. (PAN) of Transferor (Payee/Seller) 

·         Category of PAN of Transferee 

·         Category of PAN of Transferor 

·         Full Name of the Transferee 

·         Full Name of the Transferor 

·         Complete Address of the Transferee 

·         Complete Address of the Transferor 

·         Complete Address of the Property Transferred 

·         Details of amount paid/Credited 

Deposit of tax

Any tax deducted under section 194-IA will be

·         Deposited within 7 days from the end of month in which tax was deducted

·         Deposited by way of Challan-cums-statement in Form 26QB

·         Deposited electronically into RBI/SBI or any authorized bank. Director General of income-tax (Systems) will specify formats , standards and procedure for such electronic remittance

TDS Certificate

·         TDS Certificate in respect deduction under section 194-IA will be issued by deductor in Form No 16B

·         Form 16B has to be issued within 15 days from the due date of depositing tax

·         Form 16B will have to be downloaded from income tax web portal.

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