FM raises deduction limit on interest on loan for self-occupied house property
Giving the housing sector a boost, Union Finance Minister Arun Jaitley has proposed in the Budget 2014-15 deduction limit on account of interest on loan with regard to self-occupied house property has been increased from Rs 1.5 lakh to Rs 2 lakh.
In reference to the proposed move, Jaitley said that the high cost of financing continues to make ‘housing’ an area of concern for the middle class as well as the lower middle class. Jaitley said that the increase in the deduction limit on account of interest on loan in respect of self occupied house property will reducing the ‘financing cost’ burden of the home buyers.
Reiterating the government’s commitment to make efforts to provide ‘housing for all’ by 2022, Jaitley said that additional tax incentive on home loans will be extended, so as to encourage people – particularly the youth – to purchase houses.
Towards that end, Jaitley said that a proposal is being considered for setting up a Mission on Low Cost Affordable Housing, which will likely be anchored in the National Housing Bank.
Jaitley further said in his Budget speech that an amount of Rs 4,000 crore has been set aside for the National Housing Bank, for the purpose of increasing the flow of cheaper credit for affordable housing to the urban poor as well as the economically weaker sections (EWS) and low income group (LIG) segment.
Source- The Hindu Business Line
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