Sitharaman proposes extension of tax holiday for affordable housing projects by a year

In a bid to promote affordable housing projects, the date of approval for availing tax holiday has been increased by a year, said Finance Minister Nirmala Sitharaman on Saturday.

"In order to promote affordable housing projects, I propose to extend the date of approval of affordable housing projects for availing tax holiday by one more year," Sitharaman said during the presentation of the Union Budget.

House owners who have taken loans to purchase homes up to Rs 45 lakh are now eligible to claim an additional tax deduction of Rs 1.5 lakh,

This will be in addition to the Rs 2 lakh deduction which is available to house owners who brought affordable housing on loans borrowed up to March 31, 2020.

"Thus a person purchasing an affordable house will now get an enhanced interest deduction up to Rs. 3.5 lakh," Sitharaman said.