Budget sops spur hopes of buying that dream house
The Budget proposes to provide an additional deduction of R1 lakh for interest paid on housing loan for first-time house buyers. This deduction is over and above the already available deduction of interest payment available while calculating income from house property. This tax break will push many to buy their first home. This will also improve demand for homes, especially within the budget and affordable segments. Adding to an individualís sense of growth, stability and achievement, it is in line with the aim of higher growth, leading to inclusive and sustainable development.
However, the boundary of this affordable housing has certain walls of restrictions ó the home loan should not exceed R25 lakh and the value of house property should not exceed R40 lakh. Thus, it will promote home ownership mainly in smaller cities and peripheral areas and distant suburbs of metros. Additionally, this loan must be sanctioned between April 1, 2013, and March 31, 2014. The said deduction of additional interest of R1 lakh is a one-time deduction and the unutilised deduction can be carried forward till March 31, 2015.
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