On top of the wish-list is increase in tax exemption limit under Section 80C from Rs.1.5 lakh to Rs.2 lakh.
Every Budget brings with it a mountain of expectations across various sectors and strata of people and this year’s Budget to be presented on February 1 is no different. On top of the wish-list is the increase in tax exemption limit under Section 80C from the present ₹1.50 lakh to ₹ 2 lakh which will facilitate the common manto save more and pay lesser tax. This also would increase the exemption on housing loan principal portion which is part of Section 80C exemptions. This would definitely be a big boost for millions of home loan borrowers.
Next is to seek increase in tax deduction limit on housing loans for single women borrowers. This would surely be a good Women’s Day (March 8) gift. With increase in women being employed across various jobs and professions, this offering would lift the sentiments leading to an uptick in housing sector’s growth.
One of the common wishes is to seek increase in the taxable income limit; the present taxable income limit is ₹ 2.50 lakh which people want to be increased to ₹ 3 lakh.
First-time home buyers too are expecting if the additional deduction of ₹ 50,000 under Section 80EE could be increased. One of the conditions to avail this deduction is that the value of the property should not exceed ₹ 50 lakh irrespective of location and size of the house. Considering that the affordable housing initiative has taken off well, there would be a natural surge in first-time home buyers which would motivate them further.
Any loss from house property is allowed to be set-off against other income to the extent of ₹ 2 lakh as per the prevailing provisions. There is an expectation that the limit be increased to at least ₹3 lakh from the coming financial year. Any loss exceeding ₹ 2 lakh in a financial year can be carried forward to future eight assessment years and set-off against any gains made during said number of years. With rise in property prices and prevailing loan rates, the current limit seems a bit low and perhaps requires an increase.
Most of the goodies have already been doled out by way of introduction of Real Estate Bill, RERA Act and announcing of the affordable housing initiative which is already in full swing. There may not be much in this Budget for housing per se, yet any small sop would surely cheer up home buyers who would not mind the possibility of having a bit more cash in their wallets.