Bud­get wish list

In­creased tax ben­e­fits on home loans needed to boost sales

HT Estates - - Front Page - Van­dana Ram­nani

With the real es­tate sec­tor fac­ing a liq­uid­ity cri­sis and home­buy­ers bur­dened with high in­ter­est rates, de­vel­op­ers and ex­perts have pro­posed that tax ben­e­fits on home loans be in­creased to boost sales and in­fra­struc­ture sta­tus be ac­corded to af­ford­able hous­ing in this year’s bud­get.

In­creas­ing tax ben­e­fits on home loans: High in­ter­est rates — vary­ing from 10.25 to 11.5% — are a de­ter­rent. Cur­rently, an an­nual ex­emp­tion of up to R1 lakh is al­lowed on home loan in­ter­est.

Realty ex­perts point out that when the ex­emp­tion clause was in­tro­duced apart­ment prices were at least 40% lower. The ex­emp­tion limit should, there­fore, be dou­bled, they say.

The de­duc­tion for prin­ci­pal re­pay­ment of hous­ing loans un­der Sec

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