ICAI said in a pre-Budget memorandum to finance minister Mr. Pranab Mukherjee,'.It is suggested that the deduction in respect of interest on housing loan in case of self occupied property should be increased from Rs 1.5 lakh to Rs 3 lakh. The move is necessary to boost the housing sector in view of rising property prices and high interest rates"
ICAI has also pitched for aligning the provisions of the Income Tax Act, so that people above the age of 60 years can avail of all benefits meant for senior citizens.
"To bring more clarity and equality in every section which deals with senior citizens, it is suggested that 60 years age shall apply uniformly in the [Income Tax] Act and accordingly appropriate amendments may be made in the Act," ICAI said.
Although the Finance Act, 2011, had decreased the age of senior citizens from 65 years to 60 years for getting tax benefits of basic threshold limit, it has yet to amend other provisions related to the law.
The ICAI has also suggested that the central government should consider raising monetary ceilings of other tax exemption provisions in view of the inflation and declining purchasing power of rupee.
The government is expected to present the General Budget for 2012-13 anytime after March 12, 2012.
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