In a bid to jumpstart India’s sluggish housing market, the National Real Estate Development Council (NAREDCO) is urging the government to raise the tax exemption limit on home loan interest payments in the upcoming budget. Currently, homeowners can deduct up to Rs 2 lakh annually from their taxable income for the interest paid on their self-occupied property loan.
However, NAREDCO argues that this limit, established years ago, fails to reflect the significant rise in property prices and climbing interest rates. This has made homeownership a financial burden for many potential buyers.
To address this affordability gap, NAREDCO proposes a substantial increase in the exemption limit to Rs 5 lakh. This significant hike, they believe, would provide a much-needed financial incentive for potential homebuyers.
By reducing their tax burden, a higher exemption limit could make homeownership more attainable, potentially stimulating demand and reviving the ailing housing market. This strategy aligns with the government’s stated goal of promoting affordable housing and boosting economic growth.
