The Central Board of Direct Taxes (CBDT) has revised the compliance and reporting conditions for claiming deductions under Section 80EEA of the Income Tax Act. While the legal sanction window for this deduction has not been extended, the ITR filing process for AY 2025–26 has become more detailed and validation-driven.

This article explains what has changed, what hasn’t, and how taxpayers can ensure a smooth claim process without delays.

What Section 80EEA Offers

Section 80EEA provides an additional deduction of up to ₹1,50,000 on home loan interest for affordable housing, over and above the deduction under Section 24(b).

This benefit is designed for:

• First-time homebuyers

• Properties with a stamp duty value up to ₹45 lakh

• Loans sanctioned within a specific time window

What Has Not Changed

The following conditions remain the same:

• Loan sanction period: Only loans sanctioned between 1 April 2019 and 31 March 2022 qualify.

• First-time buyer condition: You must not own any other residential house property at the time of loan sanction.

• Stamp duty cap: Property stamp duty value should not exceed ₹45 lakh.

• Tax regime: Deduction is available only under the old regime.

What Has Changed for AY 2025–26

CBDT has made several changes in practice through e-filing utilities and validations:

1. Detailed ITR Disclosures
   Taxpayers now need to report lender name, loan account number, sanction date, sanctioned amount, yearly interest, and outstanding balance.

2. Utility Validation Checks
   ITR utilities flag missing or inconsistent details, reducing errors but making claims stricter.

3. Old vs New Regime Enforcement
   The new regime does not allow 80EEA. ITR forms automatically restrict entries under this section if you choose the new regime.

4. Refund Bank Validations
   Pre-validation and nomination of your refund bank account is now mandatory. Incorrect or missing details can delay refunds even when 80EEA eligibility is met.

Eligibility Checklist for Section 80EEA

Before you claim, confirm the following:

• You are a first-time homebuyer.

• The property stamp duty value ≤ ₹45 lakh.

• The loan was sanctioned between 01-04-2019 and 31-03-2022.

• You are filing under the old regime.

• You have not claimed Section 80EE for the same property.

Documents Required

Keep the following ready to avoid rejection:

• Loan sanction letter from bank/HFC

• Annual interest certificate from lender

• Sale deed/registration proof with stamp duty valuation

• Self-declaration for first-time buyer status

• Proof of opting for the old tax regime in ITR

Common Mistakes That Lead to Rejection

• Claiming under the new tax regime

• Incomplete lender/loan details in ITR

• Attempting claims for loans sanctioned after 31 March 2022

• Property value exceeding ₹45 lakh

• Interest figures not matching lender certificate or AIS

Action Plan for AY 2025–26 Filers

1. Confirm your tax regime (choose old regime if claiming 80EEA).

2. Collect and verify loan and property documents.

3. Enter all lender details in the ITR utility accurately.

4. Cross-check interest figures with AIS and lender certificate.

5. Pre-validate and nominate your refund bank account.

Conclusion

Section 80EEA continues to be a valuable deduction for eligible taxpayers, but stricter validation rules in AY 2025–26 mean accurate reporting is essential. With the right documents and careful filing, you can still maximize your home loan tax benefits under this section.

Need Help?

At TAXAJ, we help you with:

• Error-free ITR filing

• Proper documentation for Section 80EEA

• Faster refund processing with validated bank details