Budget brings good news for home buyers



Finance Minister ArunJaitley, has given special importance to home buyers in this year’s fiscal budget, raising the deduction limit on account of interest on loan in respect of self-occupied house property from Rs.1.5 lakh to Rs.2 lakh. By announcing the tax exemption on home loans government has made peoples approach to own a home easy and accessible. Additional to this government has raised the personal income-tax exemption limit by Rs. 50,000/- that is, from Rs. 2 lakh to Rs. 2.5 lakh in the case of individual taxpayers, which will increase their saving and encourage them to buy home.


Government is committed to endeavour to have housing for all by 2022 by extending additional tax incentive on home loans to encourage people, especially the young, to own houses. It has proposed to set up a Mission on Low Cost Affordable Housing to be anchored in the National Housing Bank.


While presenting the budget that a sum of Rs 4,000 crore has been earmarked for National Housing Bank with a view to increase the flow of cheaper credit for affordable housing to the urban poor/EWS/LIG segment. 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. He also informed the inclusion of slum development in the list of Corporate Social Responsibility (CSR) activities to encourage the private sector to contribute more towards this activity. 


Source: Accommodation Times dated July 11, 2014