Budget 2019: FM proposes additional tax deduction of ₹1.50 lakh on home loan interest

Budget 2019: Those purchasing homes valued up to ₹45 lakh under the affordable housing scheme, Sitharaman said, can avail enhanced interest deduction up to ₹3.5 lakh.

The Centre has rolled out a number of schemes for middle-class homebuyers that are expected to entail net gains worth ₹7 lakh, in a big boost towards the goal of ‘Housing for All’.

Those purchasing homes valued up to ₹45 lakh under the affordable housing scheme can avail enhanced interest deduction up to ₹3.5 lakh. (HT File)

Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2019-20 in Parliament on Friday, proposed additional deduction of ₹1.5 lakh for interest paid on loans borrowed up to March 31, 2020.

This move, Sitharaman said, will translate into a benefit of ₹7 lakh for middle-class homebuyers over their loan period of 15 years.

Those purchasing homes valued up to ₹45 lakh under the affordable housing scheme, Sitharaman said, can avail enhanced interest deduction up to ₹3.5 lakh.

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“For realisation of the goal of ‘Housing for All’ and affordable housing, a tax holiday has already been provided on the profits earned by developers of affordable housing. Also, interest paid on housing loans is allowed as a deduction to the extent of Rs. 2 lakh in respect of self-occupied property,” she added.

“Current rental laws are archaic as they do not address lessor-lessee relationships fairly,” she said, adding that the new tenancy rules would be shared with the states.

(The story has been published from a wire feed without any modifications to the text, only the headline has been changed)