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In summary
Section 80EEA of the Income Tax Act
Last updated: Oct 2026
Section 80EEA is a closed window. A loan sanctioned after 31 March 2022 does not qualify, but a borrower with an eligible older loan can still claim it.
- Extra deduction: up to Rs. 1.5 lakh a year on interest, above the Rs. 2 lakh under Section 24(b)
- Loan window: sanctioned from 1 April 2019 to 31 March 2022, by a bank or housing finance company
- Property: stamp duty value up to Rs. 45 lakh, as on the registration papers
- Buyer: an individual with no other house on the sanction date, and no Section 80EE claim
Regime: old regime only
Check the sanction date and the stamp duty value on your papers. If both fit, claim the extra interest only after the Rs. 2 lakh limit is used.
What is Section 80EEA?
It is a deduction for interest on a home loan taken by a first-time buyer. The Finance Act, 2019 introduced it, and the Budget of 2021 extended it to loans sanctioned up to 31 March 2022.
It adds to the Rs. 2 lakh limit under Section 24(b), so a qualifying borrower could deduct up to Rs. 3.5 lakh of interest in a year. The deduction applies only in the old regime. Borrowers with eligible loans can continue to claim it for assessment year (AY) 2026-27.
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Who qualifies for the extra deduction?
You qualify if all 5 conditions held on the sanction date.
| Condition | Requirement |
|---|---|
| Borrower | An individual |
| Loan source | A bank or housing finance company |
| Sanction date | 1 April 2019 to 31 March 2022 |
| Property | Stamp duty value of Rs. 45 lakh or less |
| Other homes | No other residential house owned on the sanction date |
You also cannot claim Section 80EE for the same loan. The Rs. 45 lakh limit uses the stamp duty value, not the price. A stamp duty value of Rs. 45,00,001 disallows the whole deduction.
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How much can I claim under Section 80EEA?
The extra deduction is the interest above Rs. 2 lakh, up to Rs. 1.5 lakh. It never exceeds Rs. 1.5 lakh in a year.
Formula used: Extra claim = lower of (interest paid − Rs. 2,00,000, Rs. 1,50,000), if interest exceeds Rs. 2,00,000.
| Item | Amount |
|---|---|
| Interest paid in financial year (FY) 2026-27 | Rs. 2,72,994 |
| Section 24(b) deduction | Rs. 2,00,000 |
| Extra deduction | Rs. 72,994 |
| Total interest deduction | Rs. 2,72,994 |
Principal repayment falls under Section 80C and is separate. Both limits sit in the old regime only.
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Can a new loan claim Section 80EEA?
No. The window closed on 31 March 2022, and the section does not cover any loan sanctioned after that date. A new borrower can still use Section 24(b), up to Rs. 2 lakh in the old regime, for a self-occupied home.
Section 80EE was an earlier version, with Rs. 50,000 for loans sanctioned in FY 2016-17 and a Rs. 50 lakh price limit. Check the sanction letter for the date. For Tax Year 2026-27 onwards, the Income-tax Act, 2025 applies, so confirm with a tax professional how the carry-over of your claim is numbered.
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Home loan for professionals
A worked example: a Rs. 40 lakh loan from December 2020
Consider Ravi Teja, a 34-year-old engineer in Hyderabad with a household income of Rs. 1.7 lakh a month and a CIBIL Score of 764, who took a Rs. 40 lakh loan in December 2020 for a flat with a stamp duty value of Rs. 44 lakh. The rate is assumed at 8.00% per annum for 20 years, with an Equated Monthly Instalment (EMI) of Rs. 33,458.
| Item | Amount |
|---|---|
| Interest in FY 2026-27 | Rs. 2,72,994 |
| Total deduction (both sections) | Rs. 2,72,994 |
| Tax saved in the 30% slab with cess | Rs. 85,174 |
| Of which from the extra deduction | Rs. 22,774 |
Ravi stays in the old regime this year, because the deductions beat the new regime for him. He checks both regimes each year.
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Does Section 80EEA affect a new home loan with Bajaj Finance?
A loan that Bajaj Finance sanctions now cannot claim it. The Section 24(b) deduction applies in the old regime for a self-occupied home.
| Loan feature | Detail |
|---|---|
| Interest rate | From 7.25% p.a.*, subject to credit assessment |
| Loan amount | Up to Rs. 15 Crore* |
| Tenure | Up to 32 years |
Approval timelines can extend where the sanction date or the stamp duty value needs checking, and minimum income thresholds can differ by city. Check your home loan eligibility and read the guide to how to calculate home loan interest.
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Frequently Asked Questions
Eligibility
Claiming and regimes
Is my loan eligible if I bought a home worth Rs. 50 lakh?
Not if its stamp duty value is above Rs. 45 lakh. The cap uses the stamp duty value on the registration papers, not the price you paid. A flat priced at Rs. 50 lakh can have a lower stamp duty value where the state's guidance value is below the price, so check the papers. The loan must also have been sanctioned between 1 April 2019 and 31 March 2022.
Can I claim Section 80EEA if I own another house?
Not if you owned another residential house on the day the loan was sanctioned. You also cannot claim Section 80EE for the same loan. If a co-borrower owned a house, check each person's position separately. Keep the sanction letter and the title papers that show your status on that date.
Can I claim Section 80EEA in the new regime?
No. It is a Chapter VI-A style deduction that the old regime allows and the new regime does not. Compare your total tax under both regimes each year. A borrower with a large interest figure and other deductions may find the old regime cheaper, as in the worked example, while others find the new regime cheaper.
Do I still claim it every year?
Yes, for as long as the loan runs, if you remain in the old regime and still meet the conditions. Claim only the interest above Rs. 2 lakh, up to Rs. 1.5 lakh. Ask the lender for the interest certificate each year, and check how the claim carries into Tax Year 2026-27 and later with a tax professional.
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