Interim Budget 2024: Home Loan Tax Relief! Is Interest Exemption Limit Increase on Cards? Check

Interim Budget 2024: In order to increase demand for residential homes, real estate regulator CREDAI has recommended the government to raise the tax exemption ceiling on both the principal amount and the interest payment on house loans prior to the Budget. Modifications to the definition of affordable housing have also been proposed by the Confederation of Real Estate Developers Association of India (CREDAI).

Proposal for Increased Section 80C Cap

The present Section 80C deduction cap for principal repayment of a house loan has been asked to be increased from Rs 1.5 lakh by CREDAI. An alternative suggestion was to regard the housing loan principal repayment deduction as a separate or singular exemption.

Moreover, CREDAI stated that the criteria for affordable housing was established in 2017 and has remained unchanged ever then. This states that the most expensive affordable home may be purchased for Rs 45 lakh. According to CREDAI, "the last seven years have seen a significant increase in real estate prices due to inflation alone."

Skyrocketing Housing Prices

"Housing prices in India have risen by 24% since June 2018, according to data from the National Housing Bank (NHB), making it nearly impossible for developers to adhere to the current cap of Rs 45 lakh." Let us inform you that the interim budget will be presented by Finance Minister Nirmala Sitharaman on February 1. Following the general elections in July, the entire budget will be presented.

Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER