Apartment sales may go high with the announcement made by Finance Minister: Nirmala Sitharaman
As part of, boosting affordable housing segment Finance Minister Nirmala Sitharaman on 5th July 2019 has announced the raising of the tax deduction limit to Rs. 3.5 lakh on interest paid on housing loan sanctioned during this financial year for the purchase of first home worth up to Rs. 45 Lakh. With this announcement anyone who purchases an apartment / Independent house for the first time worth up to Rs. 45 Lakh in the financial year 2019-20 can claim the 3.5 lakh tax deduction on interest paid on housing loan.
During her Budget presentation the finance minister Nirmala Sitaraman said the interest paid on housing loans is currently allowed as a deduction to the extent of Rs. 2 Lakh “In order to provide a further impetus, I propose to allow Additional deduction up to Rs. 1.5 lakhs for interest paid on loans borrowed up to 31st March 2020 for purchase of house valued up to Rs. 45 lakh.” she added. “This will translate into a benefit of around Rs. 7 Lakh to the middle-class home buyers over their loan period of 15 years.”