Answer

Government benefits · Housing

Sec 131 (old 80EEA): extra ₹1.5L interest deduction for affordable housing loan

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  1. Facts

    Sec 131, Income-tax Act 2025 (old Sec 80EEA) provides an additional deduction of up to ₹1.5L on home loan interest for affordable housing, over and above the ₹2L under Sec 22(1)(b) (old Sec 24(b)). So an affordable housing buyer can claim up to ₹3.5L of home loan interest deduction per year.

  2. Provisions and law

    • IT Act, Sec 131 (old 80EEA) | Extended to March 2022 (check if extended further)

  3. Analysis

    Conditions for Sec 131 (old Sec 80EEA): Stamp duty value of property ≤₹45L. Loan sanctioned between April 1, 2019 and March 31, 2022 (check if extended in Budget 2025 or 2026). First home, no other residential property. Not under Sec 130 (old Sec 80EE). Tax saving at 30% slab: ₹1.5L extra deduction = ₹46,500 additional tax saving per year. Over a 20-year loan: ₹9.3L saved. This is a significant benefit, many affordable housing buyers don't know about this deduction.

  4. Conclusion

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