Centre announces benefits worth Rs 7 lakh for middle-class homebuyers

The Centre has rolled out a number of schemes for middle-class homebuyers that are expected to entail net gains worth Rs 7 lakh, in a big boost towards the goal of 'Housing for All'.

Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2019-20 in Parliament on Friday, proposed additional deduction of Rs 1.5 lakh for interest paid on loans borrowed up to March 31, 2020.

This move, Sitharaman said, will translate into a benefit of Rs 7 lakh for middle-class homebuyers over their loan period of 15 years.

Those purchasing homes valued up to Rs 45 lakh under the affordable housing scheme, Sitharaman said, can avail enhanced interest deduction up to Rs 3.5 lakh.

"For realisation of the goal of 'Housing for All' and affordable housing, a tax holiday has already been provided on the profits earned by developers of affordable housing. Also, interest paid on housing loans is allowed as a deduction to the extent of Rs. 2 lakh in respect of self-occupied property," she added.

Talking about rental tenancy laws, Sitharaman said the Centre would take substantial steps to promote rental housing for which government would make amendments in the existing rental laws.

"Current rental laws are archaic as they do not address lessor-lessee relationships fairly," she said, adding that the new tenancy rules would be shared with the states.

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