Section 130
Section 130: additional interest deduction for a home loan sanctioned in 2016-17
Section 130 is the Income-tax Act, 2025's version of the deduction long known as "80EE" - an additional ₹50,000 deduction for home loan interest, available only to individuals whose loan was sanctioned in a specific one-year window (1 April 2016 to 31 March 2017). It is now a narrow, mostly historical provision rather than one available for new loans.
Who this still applies to
The deduction is capped at ₹50,000 per year and is only available where all of the following hold:
- The loan was sanctioned by a financial institution between 1 April 2016 and 31 March 2017.
- The loan amount sanctioned did not exceed ₹35 lakh.
- The value of the residential house property did not exceed ₹50 lakh.
- The assessee did not own any residential house property on the date the loan was sanctioned.
How it interacts with other provisions
This deduction is claimed in addition to any interest deduction available under the house-property provisions, but interest deducted under Section 130 for a given amount cannot also be deducted under any other provision of the Act.
Because the loan-sanction window (2016-17) has long closed, this section is mainly relevant to taxpayers still servicing a loan sanctioned in that specific period - it is not available for loans taken today. Section 131 is the equivalent provision for a later loan-sanction window (2019-22).
Frequently asked questions
Can I claim this deduction for a home loan I'm taking out now?
No - Section 130 only applies to loans sanctioned between 1 April 2016 and 31 March 2017. It is not available for loans sanctioned outside that window.
Is this the same as "80EE"?
Yes - it's the Income-tax Act, 2025's renumbering of the same provision, with the same 2016-17 loan-sanction window and conditions.
Related sections
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Check your Section 130 home loan interest deduction with our tax teamLast updated 9 September 2026