Finance Minister P Chidambaram while presenting his Budget today raised tax deduction limit by Rs 1 lakh for the first time home loan takers to promote the housing sector.
“…a person taking a loan for his first home from a bank or a housing finance corporation up to Rs 25 lakh during the period April 1,2013 to March 31,2014 will be entitled to an additional deduction of interest of up to Rs 1 lakh,” he announced while presenting Budget 2013-14 in Parliament.
“If the limit is not exhausted,the balance may be claimed in 2015-16. This deduction will be over and above the deduction of Rs 1.5 lakh allowed for self-occupied properties under section 24 of the Income-tax Act,” he said.
The move is likely to promote home ownership and give a fillip to a number of industries including steel,cement,brick,wood,and glass besides providing jobs to thousands of construction workers.