Question:
Deduction under Section 80EE is allowed on interest on home loan, provided the cost of the house property bought does not exceed :
Deduction under Section 80EE is allowed on interest on home loan, provided the cost of the house property bought does not exceed :
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Section 80EE has two limits: loan up to ₹35 lakh and house cost up to ₹50 lakh. The question asks about the house.
Updated On: Oct 19, 2026
- ₹ 25 lakh
- ₹ 35 lakh
- ₹ 40 lakh
- ₹ 50 lakh
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The Correct Option is D
Solution and Explanation
Step 1: Understand Section 80EE:
Section 80EE gives an extra deduction to an individual on interest paid on a home loan.
The loan must be taken from a financial institution to buy a residential house.
Step 2: Recall the conditions:
1. The loan amount must not exceed ₹35 lakh.
2. The cost of the house must not exceed ₹50 lakh.
3. The deduction limit is ₹50,000 a year.
4. The assessee must not own any other house on the date of the loan sanction.
Step 3: Check the options:
(A) ₹25 lakh is not the limit.
(B) ₹35 lakh is the limit on the loan amount, not on the cost of the house.
(C) ₹40 lakh is not a limit in this section.
(D) ₹50 lakh is the limit on the cost of the house. So (D) is correct.
Final Answer:
The cost of the house must not exceed ₹50 lakh. This is option (D).
Section 80EE gives an extra deduction to an individual on interest paid on a home loan.
The loan must be taken from a financial institution to buy a residential house.
Step 2: Recall the conditions:
1. The loan amount must not exceed ₹35 lakh.
2. The cost of the house must not exceed ₹50 lakh.
3. The deduction limit is ₹50,000 a year.
4. The assessee must not own any other house on the date of the loan sanction.
Step 3: Check the options:
(A) ₹25 lakh is not the limit.
(B) ₹35 lakh is the limit on the loan amount, not on the cost of the house.
(C) ₹40 lakh is not a limit in this section.
(D) ₹50 lakh is the limit on the cost of the house. So (D) is correct.
Final Answer:
The cost of the house must not exceed ₹50 lakh. This is option (D).
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