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Giving a thrust to government's vision of providing housing for all by 2022, the government today announced extending the additional tax incentive on home loans to encourage people, especially the young, to own houses.
Presenting the General Budget 2014-15, Finance Minister Arun Jaitley announced setting up a Mission on Low Cost Affordable Housing to be anchored by the National Housing Bank (NHB).
The Minister has proposed allocation of Rs 4,000 crore during the current fiscal for NHB with a view to increase the flow of cheaper credit for affordable housing to the urban poor/EWS/LIG segment.
Further, slum development has been incorporated in the list of Corporate Social Responsibility (CSR) activities so that the private sector is encouraged to contribute more towards this activity.
Jaitley said the Rural Housing Scheme has benefited a large percentage of population in these areas who have availed credit through Rural Housing Fund.
In the light of the above, enhanced allocations to the tune of Rs 8,000 crore has been made for NHB for the year 2014-15 to expand and support Rural Housing in the country.
He added that government has already outlined some other incentives such as easier flow of FDI in this sector and is willing to examine other positive suggestions.