New income tax rules from 1 April 2022 for mortgage borrowers – explained

New tax rules: After the start of the new financial year, many changes to the income tax rules were implemented from April 1, 2022. The imposition of a 30% flat tax on income from investment in virtual assets and the surcharge on the LTCG are some of the main changes announced by Union Finance. Minister Nirmala Sitharaman in the 2022 budget. In this budget, she did not extend the additional tax benefit given to mortgage borrowers under Section 80EEA. Thus, from April 1, 2022, home buyers will no longer be able to claim the tax benefit until Interest payment on a home loan of 1.50 lakh under Section 80EEE of the Income Tax Act.

Speaking on the new income tax rules from April 1, 2022; Mumbai-based tax and investment expert Balwant Jain said: “In FY23, a taxpayer will not be able to claim any benefit under Section 80EEE as this special benefit announced in the Union budget 2019 ended on March 31, 2022 for loan sanctioned from April 1, 20022.”

Speaking on income tax rules for home loan borrowers in fiscal year 2023; Sujit Bangar, founder of Taxbuddy.com, said: “There was an additional deduction on the interest on the home loan up to 1.5 Lakh on house properties worth less than 45 Lakh for first time home buyers. FM has not extended this scheme beyond March 31, 2022. Consequently, this additional deduction of 1.5 Lakh will not be available to taxpayers for sanctioned home loan in FY23. Other existing deduction for home loan interest till 2 Lakh would be continued under Section 24 of the Income Tax Act.”

However, Balwant Jain said first-time home buyers who received a home loan sanction letter before April 1, 2022 and their property value is below 45 lakh, can still claim tax benefit under Section 80EEA.

“A home loan borrower can claim a tax benefit under Article 80 of the EEA, if they have a home loan sanctioned between April 1, 2019 and March 31, 2022. So if a new borrower received a home loan sanction letter before March 31, 2022 and obtains disbursement in the current fiscal year, he or she will be eligible to claim a tax benefit until 1.50 lakh interest on the home loan paid in one financial year under Section 80EEA.” Balwant Jain also said that the benefit under Section 80EEA will be available for the entire term. of the home loan.

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