Demand from Finance Minister to increase the tax exemption limit on home loan interest to Rs 5 lakh in the budget

Budget 2022: Finance Minister Nirmala Sitharaman will present the general budget after the next 15 days. The real estate industry also has high hopes from the budget of the Modi government. The corona epidemic has had a bad effect on the real estate sector. In such a situation, the real estate sector is expected to make many announcements from the Finance Minister to give a boost to the real estate sector in the budget. Which includes tax exemptions for developers as well as homebuyers along with other concessions.

Homebuyers get relief
Global property consultant Knight Frank India says that in order to give a tonic to the real estate sector, the limit of tax deduction on home loan interest should be increased from Rs 2 lakh to Rs 5 lakh in the budget. At the same time, there should be a separate exemption in 80C on the principal amount up to Rs 1.50 lakh. Knight Frank India says that the real estate sector is the largest sharer in India’s GDP and the second largest employer. More than 200 industries are associated with this sector. These include from manufacturing to services industry. The corona epidemic had a strong impact on this sector. In such a situation, there are expectations from the budget for a fast recovery in this sector.

5 lakh tax exemption on home loan interest
Knight Frank India in its budget recommendations has said that the limit of tax deduction under section 24 of Income Tax on housing loan interest up to Rs 2 lakh should be increased to Rs 5 lakh. Apart from this, a separate provision for annual deduction up to Rs 1.50 lakh should be made on the principal account as well. This exemption should be given on the principal amount separately in section 80. Affordable housing will also get a boost from this. Due to which home buyers will get big relief in tax and will help in reducing the tax burden on them and the real estate sector will benefit.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.

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