Interest Deduction Limit Hiked By Rs 1.5 lakh For Affordable Houses

With a view to boost housing sector, the government today hiked the interest deduction limit for home buyers to Rs 3.5 lakh per annum from Rs 2 lakh per annum earlier on interest paid on home loans for affordable houses costing up to Rs 45 lakh. This will result in a benefit o up to Rs 7 lakh for the buyer over a loan period of 15 years, Finance Minister Nirmala Sitharaman said today while presenting the Union Budget 2019-20.

The government also plans to build 1.95 crore houses under the Pradhan mantri Awas Yojana-Gramin in the next 2 years, the minister said. She also announced that reform measures would be introduced to promote rental housing and Model Tenancy Law to be formulated and given to the states.

The minister said that joint development and concession mechanisms will be used in future for public infrastructure and affordable housing on the land parcels held by the Central Government and public sector undertakings.