Deduction Guide · AY 2026-27

Section 80EEA —
Rs1.5L Extra Home Loan Interest

Q: What is Section 80EEA of the Income Tax Act?

Section 80EEA allows an individual to claim an additional deduction of up to Rs1,50,000 per year on interest paid on a home loan taken for affordable housing. It is over and above the Rs2 lakh interest deduction under Section 24(b), and is available only under the old tax regime. The loan must have been sanctioned between 01 April 2019 and 31 March 2022, with the property stamp duty value not exceeding Rs45 lakh.

Q: How much deduction can I claim under Section 80EEA?

Up to Rs1,50,000 of home loan interest per financial year, for as long as you are repaying the loan. Combined with the Rs2 lakh under Section 24(b), an eligible borrower can deduct up to Rs3.5 lakh of interest in a year. Adding Rs1.5 lakh of principal under Section 80C takes the total home-loan tax benefit to Rs5 lakh a year in the old regime.

Q: Is Section 80EEA available under the new tax regime?

No. Section 80EEA, along with Section 24(b), 80C and 80EE, is not available under the new (default) tax regime. You must specifically opt for the old regime to claim the 80EEA deduction. Under the Income-tax Act, 2025 these disallowances continue from AY 2026-27.

Q: Am I still eligible for Section 80EEA if I took the home loan before 31 March 2022?

Yes. The eligibility window required the loan to be sanctioned between 01 April 2019 and 31 March 2022. If your loan was sanctioned within this period you continue to claim the Rs1.5 lakh deduction every year for as long as you pay interest on that loan, subject to the other conditions (stamp duty value <= Rs45L, no other house owned at the sanction date, not eligible for 80EE). Budget 2022 only closed the window for new loans — existing borrowers are unaffected.

Q: Can I claim 80EEA if I already owned a house when the loan was sanctioned?

No. One condition is that you must not own any other residential house property on the date the loan is sanctioned. If you already owned a house at that time, you are not eligible for 80EEA — even if you sell that house later. The condition is tested only at the sanction date, so acquiring another property afterwards does not stop your existing 80EEA claim.

Q: Can 80EEA be claimed on a loan sanctioned after 31 March 2022?

No. No loan sanctioned on or after 01 April 2022 qualifies for Section 80EEA. Budget 2022 did not extend the sanction window. For loans taken after that date, only Section 24(b) (up to Rs2 lakh interest, self-occupied) and Section 80C (principal, within Rs1.5 lakh) remain available, and only under the old regime.

Q: What counts as the stamp duty value for the Rs45 lakh limit?

The stamp duty value is the value assessed by the state government registration department for stamp duty purposes (the circle rate value), not necessarily the price in the sale agreement. If the stamp duty value exceeds Rs45 lakh you are not eligible for 80EEA, even if you paid less. Where the two differ, the stamp duty value is the deciding figure.

Q: Can I claim 80EEA deduction on a joint home loan?

Yes. Both co-borrowers of a joint home loan can independently claim Rs1.5 lakh each under 80EEA, provided each satisfies all conditions individually — no other house on the sanction date, stamp duty value <= Rs45 lakh and not eligible for 80EE. Each can also claim Section 24(b) up to Rs2 lakh on the same property. So a joint loan can yield up to Rs3.5L x 2 = Rs7 lakh of interest deductions a year. Both borrowers must be co-owners of the property.

Q: Can I claim both Section 80EEA and Section 24(b)?

Yes, and that is the intended stacking. Section 24(b) allows interest up to Rs2 lakh (self-occupied). Section 80EEA allows an additional Rs1.5 lakh of interest over and above that. So you first exhaust the Rs2 lakh under 24(b), then claim the balance interest (up to Rs1.5 lakh) under 80EEA — a total of Rs3.5 lakh of interest in the old regime.

Q: Can I claim both Section 80EEA and Section 80C for the same property?

Yes. They cover different components. Section 80C covers principal repayment plus stamp duty/registration charges, within the Rs1.5 lakh 80C ceiling. Section 80EEA covers additional interest up to Rs1.5 lakh over Section 24(b). For an eligible old-regime borrower: Rs1.5L (80C) + Rs2L (24b) + Rs1.5L (80EEA) = Rs5 lakh of home-loan deductions in one year.

The additional Rs1.5 lakh home loan interest deduction for affordable housing — who qualifies, the closed sanction window, how it stacks with Section 24(b) and 80C, and why it is old-regime only.

Updated for AY 2026-27 Old regime only Home-loan borrower guide

Compare Old vs New Regime See deduction stack

Rs1.5L80EEA extra interest

Rs3.5LWith 24(b) combined

Rs45LStamp duty cap

Rs5LTotal home-loan deductions

Quick Answer

Section 80EEA gives an additional deduction of Rs1,50,000 on home loan interest for affordable housing, available only under the old tax regime. It is over and above the Rs2 lakh allowed under Section 24(b), so an eligible borrower can claim up to Rs3.5 lakh of interest a year. The loan must have been sanctioned between 01 Apr 2019 and 31 Mar 2022 with the property's stamp duty value <= Rs45 lakh. The window is closed for new loans, but existing eligible borrowers keep claiming until the loan is repaid.

Extra interest Rs1.5L

With 24(b) Rs3.5L

Stamp duty <= Rs45L

Regime Old only

Who qualifies

Eligibility Conditions for Section 80EEA

All four conditions must be satisfied. Only an individual can claim 80EEA — HUFs, firms and companies cannot.

Condition	Requirement	Note
Loan sanction period	Sanctioned 01 Apr 2019 – 31 Mar 2022	Only sanction date matters; disbursement can be later
Stamp duty value	Property value <= Rs45 lakh	Stamp duty value, not agreement value
First-time owner	No other house on the loan-sanction date	Checked only at sanction, not continuously
Not eligible for 80EE	80EE & 80EEA are mutually exclusive	80EE covers loans of Apr 2016 – Mar 2017

Lender must be a bank or notified housing finance company. Individual borrowers only.

80EEA is NOT available under the new (default) regime

From AY 2024-25 the new regime is the default and it disallows Section 24(b), 80C, 80EE and 80EEA. You must specifically opt for the old regime to claim 80EEA. Also, no loan sanctioned after 31 March 2022 qualifies — Budget 2022 did not extend the window.

Not sure whether the old regime with Rs3.5L interest still beats the new-regime slabs for you? Let us run both.

Compare Old vs New →

Side by side

Section 80EEA vs 80EE vs Section 24(b)

The three home-loan interest provisions differ on limit, sanction window and property cap. 24(b) is the base; 80EE and 80EEA are add-ons for specific windows.

Section	Max deduction	Loan sanction period	Property condition	Regime
24(b)	Rs2L self-occupied	Any loan	None	Old (self-occupied cap applies)
80EEA	Rs1.5L extra	Apr 2019 – Mar 2022	Stamp duty <= Rs45L	Old only
80EE	Rs50k extra	Apr 2016 – Mar 2017	Stamp duty <= Rs50L, loan <= Rs35L	Old only

A borrower can claim only one of 80EE / 80EEA for a given loan, plus 24(b). Let-out property has no Rs2L cap under 24(b) but set-off of house-property loss against other income is capped at Rs2L.

Maximum benefit

How the Home-Loan Deductions Stack (Old Regime)

For an eligible affordable-housing borrower (loan sanctioned Apr 2019 – Mar 2022, stamp duty value <= Rs45L), the deductions combine as follows in one year:

Component	Section	Maximum deduction
Home loan interest (self-occupied)	24(b)	Rs2,00,000
Additional interest (affordable housing)	80EEA	Rs1,50,000
Principal repayment	80C	Within Rs1,50,000
Stamp duty / registration (year of payment)	80C	Within the Rs1.5L 80C limit
Total interest + principal	—	Rs5,00,000

Interest total = Rs3.5L (Rs2L + Rs1.5L). Principal + stamp duty share the single Rs1.5L 80C ceiling.

Interest deduction — eligible 80EEA borrower

Home loan interest paid in yearRs3,80,000

Allowed u/s 24(b) (self-occupied cap)Rs2,00,000

Balance interest allowed u/s 80EEARs1,50,000

Total interest deductionRs3,50,000

Tax saved (30% + 4% cess)

Deduction claimedRs3,50,000

Marginal rate31.2%

Effective tax savingRs1,09,200

Approx. yearly saving~Rs1.09L

On a joint home loan, each co-borrower who is also a co-owner and satisfies the conditions individually can claim 24(b) and 80EEA separately — up to Rs3.5L each, i.e. Rs7L of interest across two borrowers.

Which regime

Old vs New Regime for an 80EEA Borrower

Old

Old regime

80EEA Rs1.5L + 24(b) Rs2L interest allowed
80C principal up to Rs1.5L allowed
Standard deduction Rs50,000 (salaried)
Best when total deductions are high

New

New regime (default)

80EEA, 24(b), 80C, 80EE all disallowed
Standard deduction Rs75,000 (salaried)
Rebate u/s 87A up to Rs12L taxable income
Best when you have few deductions

Rule of thumb

If your home-loan interest plus 80C and other deductions comfortably exceed the break-even (often around Rs3.75L-Rs4L of total deductions), the old regime with 80EEA usually wins. Run both before you lock your regime for the year.

Government sourcesSection 80EEA text & rules: incometax.gov.in · Deduction u/s 24(b) & 80C: Income-tax Act, 1961 · Window inserted by Finance (No.2) Act 2019; not extended in Budget 2022 · New Income-tax Act, 2025 — 80EEA renumbered as clause 131 from AY 2026-27

Section 80EEA — Frequently Asked Questions

Basics

What is Section 80EEA of the Income Tax Act?

Section 80EEA allows an individual to claim an additional deduction of up to Rs1,50,000 per year on interest paid on a home loan taken for affordable housing. It is over and above the Rs2 lakh interest deduction under Section 24(b), and is available only under the old tax regime. The loan must have been sanctioned between 01 April 2019 and 31 March 2022, with the property stamp duty value not exceeding Rs45 lakh.

How much deduction can I claim under Section 80EEA?

Up to Rs1,50,000 of home loan interest per financial year, for as long as you are repaying the loan. Combined with the Rs2 lakh under Section 24(b), an eligible borrower can deduct up to Rs3.5 lakh of interest in a year. Adding Rs1.5 lakh of principal under Section 80C takes the total home-loan tax benefit to Rs5 lakh a year in the old regime.

Is Section 80EEA available under the new tax regime?

No. Section 80EEA, along with Section 24(b), 80C and 80EE, is not available under the new (default) tax regime. You must specifically opt for the old regime to claim the 80EEA deduction. Under the Income-tax Act, 2025 these disallowances continue from AY 2026-27.

Eligibility

Am I still eligible for Section 80EEA if I took the home loan before 31 March 2022?

Yes. The eligibility window required the loan to be sanctioned between 01 April 2019 and 31 March 2022. If your loan was sanctioned within this period you continue to claim the Rs1.5 lakh deduction every year for as long as you pay interest on that loan, subject to the other conditions (stamp duty value <= Rs45L, no other house owned at the sanction date, not eligible for 80EE). Budget 2022 only closed the window for new loans — existing borrowers are unaffected.

Can I claim 80EEA if I already owned a house when the loan was sanctioned?

No. One condition is that you must not own any other residential house property on the date the loan is sanctioned. If you already owned a house at that time, you are not eligible for 80EEA — even if you sell that house later. The condition is tested only at the sanction date, so acquiring another property afterwards does not stop your existing 80EEA claim.

Can 80EEA be claimed on a loan sanctioned after 31 March 2022?

No. No loan sanctioned on or after 01 April 2022 qualifies for Section 80EEA. Budget 2022 did not extend the sanction window. For loans taken after that date, only Section 24(b) (up to Rs2 lakh interest, self-occupied) and Section 80C (principal, within Rs1.5 lakh) remain available, and only under the old regime.

What counts as the stamp duty value for the Rs45 lakh limit?

The stamp duty value is the value assessed by the state government registration department for stamp duty purposes (the circle rate value), not necessarily the price in the sale agreement. If the stamp duty value exceeds Rs45 lakh you are not eligible for 80EEA, even if you paid less. Where the two differ, the stamp duty value is the deciding figure.

Joint loans

Can I claim 80EEA deduction on a joint home loan?

Yes. Both co-borrowers of a joint home loan can independently claim Rs1.5 lakh each under 80EEA, provided each satisfies all conditions individually — no other house on the sanction date, stamp duty value <= Rs45 lakh and not eligible for 80EE. Each can also claim Section 24(b) up to Rs2 lakh on the same property. So a joint loan can yield up to Rs3.5L x 2 = Rs7 lakh of interest deductions a year. Both borrowers must be co-owners of the property.

With other sections

Can I claim both Section 80EEA and Section 24(b)?

Yes, and that is the intended stacking. Section 24(b) allows interest up to Rs2 lakh (self-occupied). Section 80EEA allows an additional Rs1.5 lakh of interest over and above that. So you first exhaust the Rs2 lakh under 24(b), then claim the balance interest (up to Rs1.5 lakh) under 80EEA — a total of Rs3.5 lakh of interest in the old regime.

Can I claim both Section 80EEA and Section 80C for the same property?

Yes. They cover different components. Section 80C covers principal repayment plus stamp duty/registration charges, within the Rs1.5 lakh 80C ceiling. Section 80EEA covers additional interest up to Rs1.5 lakh over Section 24(b). For an eligible old-regime borrower: Rs1.5L (80C) + Rs2L (24b) + Rs1.5L (80EEA) = Rs5 lakh of home-loan deductions in one year.

What is the difference between Section 80EE and Section 80EEA?

Section 80EE was the earlier provision for first-time buyers with loans sanctioned between 01-Apr-2016 and 31-Mar-2017, giving an extra Rs50,000 interest deduction (stamp duty value <= Rs50L, loan <= Rs35L). Section 80EEA is its more generous successor: Rs1.5 lakh for loans sanctioned 01-Apr-2019 to 31-Mar-2022 with stamp duty value <= Rs45 lakh. A borrower eligible for 80EE cannot claim 80EEA for the same loan — they are mutually exclusive.

Claiming

When does the Section 80EEA deduction stop?

It stops when the loan is fully repaid (no more interest), when you sell the property (the loan typically ends), or naturally if you switch to the new regime (where it is disallowed). There is no fixed time limit like 5 years — you can claim it for the entire loan tenure. The condition of not owning another house is checked only at the sanction date, so buying another property later does not end the claim.

How do I claim Section 80EEA in my ITR?

Opt for the old regime, then report the interest under two heads: up to Rs2 lakh under Section 24(b) in the house-property schedule, and the balance (up to Rs1.5 lakh) under Section 80EEA in Chapter VI-A deductions. Keep the lender interest certificate, loan sanction letter (to prove the Apr 2019-Mar 2022 date) and stamp duty valuation as evidence. 80EEA is claimed only after the 24(b) limit is used.

Does the Income-tax Act 2025 change Section 80EEA?

The substantive benefit is unchanged for existing eligible borrowers. The Income-tax Act, 2025 (applicable from AY 2026-27) re-numbers the provision — 80EEA is carried as clause 131, with 24(b) as 22(2), 80C as 123 and 80EE as 130 — but the amounts, conditions and old-regime-only restriction continue. The familiar "80EEA" reference is still what borrowers and lenders use.

Done-for-you

Related TaxClue Services

Income Tax Return FilingCA-assisted ITR claiming 80EEA, 24(b) and 80C correctly.Explore →Old vs New Regime AdvisoryWe run both regimes and pick the one that saves you more.Explore →Capital Gains on PropertySelling the financed home? Plan the gain and reinvestment.Explore →TDS Return FilingTDS on property purchase (194-IA) and rent handled end to end.Explore →

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