Union Budget 2022: Ficci calls for separate section for home loan repayment for principal and interest components | Real estate news
New Delhi: Ficci Chamber of Commerce has requested the Ministry of Finance to introduce a separate deduction for home loan repayments for principal and interest components in the upcoming union budget 2022-23.
“Currently, repayment of principal component of home loans is eligible for tax deduction under Section 80C, while repayment of interest component up to Rs 2 lakh is eligible for tax deduction under Section 24B However, with multiple investment options, small savings instruments, insurance policies, pension plans, etc. cluttering Section 80C, many home loan borrowers still do not receive a tax deduction. on their entire home loan principal repayments,” Ficci said in its pre-budget memo.
Ficci recommended that there should be a separate section for the repayment of home loans with a combined maximum deduction of up to Rs 5 lakh for the principal and interest components.
“Similarly, the upper limit of Section 24B becomes inadequate for a large number of home loan borrowers, especially in the early years of their tenure. Therefore, there should be a separate section for loan repayment real estate with a combined maximum deduction of up to Rs 5 lakh for principal and interest components. This would boost homebuyers’ sentiment and hence increase demand in the housing industry,” the official said. industry body.
Dates for the budget session have yet to be announced, although Finance Minister Nirmala Sitharaman is expected to present the 2022-23 budget on February 1, as has been the practice for a few years now.