Budget 2013: Chidambaram's big incentive to buy a home this year

First home buyers got a shot in the arm after Finance Minister P Chidambaram announced additional deduction on payment of interest for homes below Rs. 25 lakh.

First housing loan of up to Rs. 25 lakh will be eligible for extra Rs. 1 lakh tax deduction, Mr Chidambaram said. Currently, the deduction limit for payment of interest for self-occupied property is Rs. 1.5 lakh.

The deduction will be applicable for loans taken in fiscal 2013-14.
Link:Budget 2013: Chidambarams big incentive to buy a home this year – NDTV Profit is a good move by Shri Chidambaram.his experience and knowledge has helped frame a good budget provision for first time home buyers.This will help push the housing market..
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  • I dont understand Why the limit of loan on which additional deduction of Rs. 1 lakhs is allowed, is restricted to Rs. 25 lakhs??
  • It is restricted because the government wants to encourage affordable housing in the country. They do not want the benefit to go to investors or HNIs.
  • But do you think you can get anything even affordable houses in this budget in national capital region.

    I would interpret it as government is encouraging affordable housing in tier 2 cities.
  • Budget announcement seems good for new home buyers and first time buyers because they are offered taxation benefit under tax schemes like Income Tax Act Section 24 B offers deduction.