Budget Expectation 2022: Finance Minister Nirmala Sitharaman will present the budget on 1 February 2022, but from now on, industries related to all sectors are sending their demands from the budget to the Finance Minister. Real estate and property markets are also sending their demands to the Finance Minister. Right now, times are going very good for the property market. Home loan interest rates are at a decade low and customers have a variety of home options to choose from. Now more relaxations are expected from the upcoming budget 2022 to buy houses and expand the property market.
Home loan exemption should be kept out of 80C
Anuj Puri, Chairman of ANAROCK Group, said that at present the principal amount of home loan is exempted under Section 80C of Income Tax. Actually, there are many investment options under 80C on which exemption is available. Its maximum limit is Rs 1.50 lakh. The government has not increased this limit for a long time. Now the government should increase this limit this time. Due to this, property sales will increase.
The industry believes that there should be a separate section for rebate on principal amount of home loan. Kanika Gupta Shourie, co-founder and COO of Square Yards, said the government should allow a separate deduction of Rs 1.50 lakh on home loan principal payment under Section 80C. Currently, Section 80C gives exemption on many investments including PF, PPF and life insurance policies. There are lots of options in 80C for rebate on home loan principal after investment for the middle class. If it is 80 C different then people’s interest in it will increase more.
Increase deduction on home loan interest
The current interest rates on home loans are less than 7 percent per annum, but still a person taking a loan of more than Rs 30 lakh is not able to claim deduction on the entire interest paid in the initial years. This is because there is a limit of Rs 2 lakh per year against deduction of interest rate under Section 24(B) of the Act. Puri says that the tax exemption of Rs 2 lakh on housing loan interest rates needs to be increased to at least Rs 5 lakh. This will boost the property market.