Homebuyers to benefit
For first-time homebuyers, finance minister Arun Jaitley has given an additional deduction on interest for home loans of up to ₹ 35 lakh, provided the house value doesn’t exceed ₹ 50 lakh.
Currently, homebuyers are entitled to claim both the interest and principal components of a home loan repayment for tax benefits. The interest payable on a ‘self-occupied’ house is sub- ject to a maximum deduction of ₹ 2 lakh under the head income from house property. Principal repayment is allowed to be claimed under Section 80C.
This benefit ought t o have been extended for everybody, not only the l ower middle class. Also, there should not have been a cap on the cost of the house which in this case has been set at ₹ 50 lakh, says a tax expert.