Question

Maximum deduction available as deduction of interest payable on loan taken by an individual from any financial institution for the purpose of acquisition of a residential house property is _____.

• A. 25,000
• B. 40,000
• C. 50,000
• D. 100,000

Answer 1

The correct option is C 50,000

Section 80EE allows tax benefits for first time home buyers. Income tax deduction can be claimed on home loan interest towards your first house property. The deduction allowed under this section is for interest paid on home loan up to maximum Rs 50,000 per financial year.