Take a home loan before March 31 to avail benefit under section 80EEA

A key positive of this deduction is that you don't have to wait until possession to begin claiming it

In Union Budget 2021, the government extended the additional tax deduction of Rs 1.5 lakh on interest paid on housing loans for the purchase of affordable homes under Section 80EEA of the Income-Tax (I-T) Act, 1961 by one more year. Borrowers can now avail of this deduction till March 31, 2022.

Section 24 (b) and 80C

The key deductions that anyone who takes a home loan can avail of fall under Section 24 (b) and Section 80C.

The deduction under Section 80C on the interest component can go up to Rs 2 lakh if the owner or his family lives