New Delhi: Buying a house by the time you turn 30 is a major life goal the young Indians have set for themselves. With Budget 2018 less than 2 weeks away, let us see what you can expect if you are planning to buy a house, anytime soon:
1. Separate Exemption for Principal on Home Loan
Currently you can get Income Tax Exemption for the principal amount of your home loan under Section 80C, however the cap of ₹1,50,000/- is currently shared with other investments like PPF, LIC, etc. It is high time the government creates a separate exemption for the principal amount paid under Home Loan, from other investments.
2. Extension in Interest on Home Loan limit
Under the current Income Tax rules, an individual can get up to ₹2 Lakh income tax exemption on interest paid on home loan for self-occupied property. However, given the EMIs and loan tenures, there’s a large chunk that goes as interest in Home Loan repayment schedule. The government might increase this cap from the current ₹2 Lakh to ₹3 Lakh to provide relief to middle-income group home owners.
3. Housing for All
The NDA government’s dream of Housing for All by 2022 needs a major push. Therefore, it can be expected that the government might put the GST on under construction properties under the 12% GST slab as compared to current 18% GST. This will decrease the cost pricing and will be beneficial for consumer as well as developers.
4. Amendment to Section 80 IBA
It is widely projected that the government might increase the carpet area under Section 80 IBA of IT Act 2016 up to 150 sq meter.
5. Easy disbursal of Home Loans
Also, Public Sector Banks are going to get a major boost due to Mega Bank Recapitalisation Plan of the government. The government is expected to allocate budgetary support to PSBs for their capital requirement. Once the state-owned lenders have funds, it will be easier for consumers to get their home loan requests approved, and lower interest rate on Home Loans will be cherry on the top.
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