In a relief to middle-class people, the Union Finance Minister in Budget 2020 has proposed an additional deduction up to Rs. 1.5 lakhs for Interest paid on Loans taken for an affordable house extended till 31st March, 2021.
In the last budget, the Finance Minister had announced an additional deduction of up to one lakh, fifty thousand rupees for interest paid on loans taken for the purchase of an affordable house.
For the realization of the goal of Housing for All and affordable housing, an additional deduction of up to one lakh fifty thousand rupees for interest paid on loans taken for the purchase of an affordable house was announced in last year’s budget. The deduction was allowed on housing loans sanctioned on or before 31st March 2020.
In order to ensure that more persons avail of this benefit and to further incentivize affordable housing, the Finance Minister proposed to extend the date of loan sanction, for availing this additional deduction by one more year.
Referring to the tax holiday provided on profits earned by developers of Affordable Housing projects approved by 31st March 2020, Smt Nirmala Sitharaman proposed to extend the date of approval of affordable housing projects for availing this tax holiday by one more year.
