Tax exemption on home loan: This time in the budget, the government may announce more tax exemption for home buyers. The government is considering increasing the income tax exemption limit on home loan interest. Currently, under Section 24 of the Income Tax, a rebate of Rs 2 lakh is being given on interest.
Highlights – Tax exemption on home loan
- Government may increase IT exemption limit on home loan interest from 2 lakh to 3 to 4 lakh
- Currently, under Section 24 of the Income Tax, a rebate of Rs 2 lakh is being given on interest.
- Concession is being considered on interest during construction period
- The option of giving a separate rebate on the principal of the home loan is being discussed.
Looks like the government can give a lot of relief to the common man in the budget presented on February 1. According to sources, this time the government may announce more tax exemption for home buyers. The government has considered raising the IT exemption limit on home loan interest.
Exemption will increase on interest
If the proposals have been agreed on this, then a rebate of Rs 2 lakh is being given on interest under section 24 of the income tax, which has been recommended to be increased from Rs 3 to 4 lakh. is. In addition, a rebate on interest is being considered during the construction period.
Discount will also increase on principal amount! – Tax exemption on home loan
According to sources, the exemption limit can also be increased on the principal of the home loan. The option of giving a separate rebate on the principal of the home loan is being discussed. Home loan principal gets an exemption under section 80C. According to a senior official, the government wants the home loan waiver in such a way that it does not put too much burden on the government. Also, a lot of money goes into the pocket of ordinary customers. A number of proposals are being considered for this.
In the way the industry and economists have proposed in this regard, they have emphasized on increasing income tax exemption on home loan interest. They believe that this will lead to more home loans. In this case, shopping in real estate will increase. More houses will be sold, money flow will also increase in the market. At the same time, the government will also be able to say that it has given such exemption to fulfill the promise of providing housing to the people. The government has promised to give everyone a home by 2024. However, it is now being claimed by the government that this target will be achieved ahead of time.
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