Deduction Under Section 80EE,80D,80DD

Section 80EE Deductions on Home Loan Interest for First Time Home Owners

Deduction under section 80EE is available in Financial Year 2017-18 if the loan has been taken in the financial year 2016-17. The deduction is available only to an individual having only one house property on the date of sanction of the loan. The value of the property should be less than Rs.50, 00,000 and the home loan must be less than Rs.35, 00,000. 

The loan taken from a financial institution must have been sanctioned between 1 April 2016 and 31 March 2017. There is an additional deduction of Rs 50,000 available on your home loan interest on top of deduction of Rs 2, 00,000 on the interest component of home loan EMI allowed under section 24.

Financial Year 2013-14 and Financial Year 2014-15 during these financial years, the deduction available under this section was a first-time house worth Rs 40 00,000 or less. An individual can avail of this only when the loan amount during this period is Rs 25, 00,000, or less. The loan must be sanctioned between 1 April 2013 and 31 March 2014. The aggregate deduction allowed under this section cannot exceed Rs 1, 00,000, and is allowed for Financial Year 2013-14 and Financial Year 2014-15.  

Section 80D Deduction for the premium paid for Medical Insurance

An individual or Hindu Undivided Family (HUF) can claim a deduction of Rs.25, 000 under section 80D on insurance for self, spouse and dependent children. Additional deduction for parents is available up to Rs 25,000 if they are less than 60 years of age. If the parents are aged above 60, the deduction amount is Rs 50,000.

In case, both assessee and parents are 60 years or above, the maximum deduction available under this section is up to Rs.1 lakhs.

Example: Mohit’s age is 65 and his father’s age is 90. In this case, the maximum deduction Mohit can claim under section 80D is Rs. 100,000. From Financial Year 2015-16 a cumulative additional deduction of Rs. 5,000 is allowed for a preventive health check.  

Section 80DD Deduction for Rehabilitation of Handicapped Dependent Relative

Section 80DD deduction is available to a resident individual or a Hindu Undivided Family (HUF) and is available on:

  • Expenditure incurred by the assessee on medical treatment, training and rehabilitation of handicapped dependent relative
  • Payment or deposit to specified scheme for maintenance of handicapped dependent relatives.
    1. Where disability is 40% or more but less than 80% – fixed deduction of Rs 75,000.
    2. Where there is a severe disability (disability is 80% or more) – fixed deduction of Rs 1, 25,000.

To claim this deduction a certificate of disability is required from a prescribed medical authority.

 From FY 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1, 00,000 has been raised to Rs 1,25,000.  

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