Home­buy­ers to ben­e­fit

HT Estates - - FRONT PAGE -

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.

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