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Union Budget: Tax deduction on home loans a relief, say homebuyers in Pune
The union government’s move of announcing additional income tax deduction on home loans for affordable houses is indeed a gift to the middle-class people, says Narendra Sonawane
The first budget of the second term of the Narendra Modi-led government presented on Friday extended an additional deduction to homebuyers in the affordable housing category.
“The union government’s move of announcing additional income tax deduction on home loans for affordable houses is indeed a gift to the middle-class people. Owning a home is a big achievement for every person that belongs to the middle class,” said Narendra Sonawane, president, Western Maharashtra Tax Practitioners Association Pune.
He said, “The reduction of GST (goods and services tax) on electric vehicles should be welcomed as it will shift the industrial focus on manufacturing of e-vehicles.”
IT professional Ashvini Date said, “The announcement of income tax deduction will certainly encourage professionals like me to buy new homes. The fact that if one avails a home loan for purchase or construction of a house, the capital repayment and interest paid on the home loan qualifies for deduction under separate income tax sections will benefit us.”
While the proposal of encouraging affordable housing is being welcomed, increasing excise duty and cess each on petrol and diesel by Re 1 per litre has been widely criticised.
Vivek Velankar, founder of city-based NGO Sajag Nagrik Manch, said, “The government’s decision to increase the excise duty on fuel will certainly hike fuel prices. Besides, citizens already have to pay infrastructure cess. The government at least should announce that there will be no toll charges on projects developed through this revenue.”
Citizens are paying various cess for infrastructure projects which needs to be stopped immediately, Velankar said.
Homemaker Lalitha Phalke said, “Petrol prices should not be hiked as it has now become an essential commodity as every household owns a vehicle. The government must come up with alternative measures that will benefit their exchequer.”
“It is good in intent, but doesn’t match in content. There have to be constructive steps towards strengthening the agriculture sector, MSME (micro, small and medium enterprises) that suffered post demonetisation. The present budget does not mention anything beneficial on this area,” said Ketan Pathak, CEO, Auctus Systems.