Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: VAT Audit :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ACCOUNTING STANDARDS :: TDS :: articles on VAT and GST in India :: cpt :: due date for vat payment :: form 3cd
 
 
General »
 Companies should invest in upgradation of tax technology
 Top House tax writer suggests measures to mitigate the impact of the border tax
 Consumer goods distributors, wholesalers to bear the brunt of GST
 GST classification woes to continue
 There will be no tax on farm or agriculture income
 RBI, Income Tax Acts to be amended for electoral bonds, Jaitley says
  Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016
 I-T zeroes in on Mumbai trader in first crackdown after demonetisation
  Tax queries answered by Dilip Lakhani, Senior Chartered Accountant
 Income Tax Department Failed To Unearth Black Money Despite Information
 Govt filing twice as many cases as private cos in Supreme Court

Budget: Rs 3 lakh I-T relief on home loan?
June, 18th 2009

In what can hold out hopes for lakhs of home owners, the urban development ministry is pushing a proposal to double the income tax relief on home loan interest payout to Rs 3 lakh, triple the exemption on payment of the principal amount and reduced interest rates for houses up to Rs 30 lakh.

Urban development minister S Jaipal Reddy raised the demand in a pre-budget meeting with finance minister Pranab Mukherjee on Tuesday arguing that I-T concessions would boost the recession-hit realty sector besides giving relief to households affected by the economic slowdown.

The ministry has also recommended that the income tax exemption limit om rental income be raised to 50% from the existing 30%.

The ministry, which is pushing a proposal to hike income-tax exemption available for interest payment on home loans to Rs 3 lakh a year, is also batting for raising the limit for exemption on repayment of principal amount to Rs 3 lakh.

Currently, taxpayers taking housing loans are eligible for I-T exemption on interest payment of up to Rs 1.5 lakh every year. Along with this, the repayment of principal amount up to Rs 1 lakh is part of investments eligible for benefit under Section 80(C) of the Income Tax Act.

The existing tax exemption limit is considered inadequate at a time when a two-bedroom apartment in the metro cities costs anything between Rs 25 lakh and Rs 35 lakh. In a move to push demand in the housing sector, the UD minister also favoured cheaper loans for buying houses.

The ministry also demanded lowering of interest rate on small housing loans as part of the government's effort to stimulate the economy. "We should make arrangements for giving loans at 6.5% interest for houses in the below Rs 5 lakh category," Reddy said after his meeting with finance minister.

Reddy also argued for extending housing loans at the rate of 7.5% for houses costing above Rs 5 lakh and up to Rs 30 lakh. Presently, 7.5% rate is available for apartments priced up to Rs 20 lakh. The housing sector is on top of the UPA's agenda considering the huge demand-supply gap in cities and the sector's potential in generating employment.
The ministry also demanded that the real estate sector should be treated on a par with industry for all purposes, particularly lending norms like interest rate and risk perception for project construction finance.

The housing sector in the country has been hit hard by falling demand following a rise in interest rates. Besides lowering of home loan interest rates, the realty sector has been continuously pitching for greater tax benefit to stimulate the decline in demand.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions