Budget 2016: These are the sops announced for housing sector
Zee Media Bureau
New Delhi: Finance Minister Arun Jaitely has managed to bring cheer to the housing sector as a whole, in the Budget 2016.
Not only the first time house buyers, even those who live in rented houses were greeted with tax benefits. This brings much relief especially to the first time house buyers since the cost of housing property has escalated significantly in the past some years.
- Budget 2016 offers additional deduction of Rs 50,000 on interest for loan up to Rs 35 lakh provided the value of house doesn't transcend Rs 50 lakh.
- The house buyers are already allowed to claim tax deduction of up to Rs 2 lakh on the interest component of the loan. With this latest move, overall deduction benefit will increase to Rs 2.5 lakh. Tax payers who fall in the highest tax bracket and also qualify for addition deduction will witness an extra tax saving of Rs 15,450 on account of the increase in the deduction limit.
- Finance Minister Arun Jaitley also increased the tax deduction limit to Rs. 60,000 per annum from the current Rs. 24,000 on the housing rent. He increased the limit of deduction of rent paid under 80 GG from Rs. 24,000 per annum to Rs. 60,000 to provide relief to those who live in rented houses.