Interest on Housing loan u/s 80EEA

A Housing loan sanctioned in 2020 and the stamp duty value of the property is Rs 42 lakhs. The Interest on Housing loan came to Rs. 3.80 lakhs in a year. After availing interest exemption in current year under section 80EEA upto Rs. 3.50 lakhs, can the balance of Housing loan interest of Rs. 30,000 can be set-off with Capital Gains in the current year.

Now I need clarification for the following:

  1. If the balance can be set-off in the current year with Capital Gains, under which head it can be set-off, i.e.,

a) STCG other than equity,

b) STCG on equity,

c) LTCG on house property,

d) LTCG other than equity,

e) LTCG on equity.

  1. If the set-off is not allowed in the current year, can it be carried forward to next year?

  2. Is there any limit for set-off of interest.

Hi @arnath60,

Deduction under section 80EEA cannot be claimed against capital gains. If you have any other income like that from salary, business or interest income, the 80EEA deduction will be adjusted against those.