Union Budget 2014-15: Purchase of homes becomes more attractive
The purchase of homes has now become a tad more attractive, at least for the middle class — thanks to NDA government’s Budget 2014-15!
In the Budget this year, the deduction against interest payment on home loan from the taxable income has been increased to Rs 2,00,000. It previously was Rs 1,50,000. The move implies that home buyers will henceforth be able to save an additional amount of Rs 15,450 from their tax liability.
In effect, the move will also lead to a reduction in interest rates for home loans.
However, while the government has asserted that the step taken with regard to raising deduction against interest payment on home loan from the taxable income will entice potential homebuyers to make property purchases, real estate experts have described the move as ‘incremental’ rather than visionary.
In the opinion of realty experts in big cities like Delhi, Mumbai and Bangalore, the move will hardly make a difference to home-buyers because the cost of most of the flats in these cities is more than Rs 1 crore.
Noting that the relief announced by the government is only marginal for potential home-buyers in tier-one cities, Pankaj Kapoor – from property research firm Liases Foras – said: “The rebate should have been much higher… This exemption is not enough to promote housing in category one cities.”
Source- The Times of India
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