In a bid to boost Indian housing sector credit, the central government is contemplating to enhance income tax exemption for up to Rs. 3 lakh paid as interest on housing loans in a year, from the existing limit of Rs. 1.5 lakh.
The central government is considering to raise the income tax deduction limit for home loan in the coming Budget (2012-13).
The Budget is scheduled to be tabled on March 16, 2012. Now, a deduction of up to Rs. 1.5 lakh is available from taxable income towards interest on loan taken for house.
Besides, borrowers can enjoy exemption on payment of principal amount. However, it is part of exemption to savings capped at Rs. 1 lakh per financial year. With the property prices and interest rates rising with each passing year, there is need to revise the limit. In order to arrest the declining growth rate, the industry associations have demanded raising the tax limit ceiling for the housing loan.
The central government is considering to raise the income tax deduction limit for home loan in the coming Budget (2012-13).
The Budget is scheduled to be tabled on March 16, 2012. Now, a deduction of up to Rs. 1.5 lakh is available from taxable income towards interest on loan taken for house.
Besides, borrowers can enjoy exemption on payment of principal amount. However, it is part of exemption to savings capped at Rs. 1 lakh per financial year. With the property prices and interest rates rising with each passing year, there is need to revise the limit. In order to arrest the declining growth rate, the industry associations have demanded raising the tax limit ceiling for the housing loan.
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