SBI seeks tax incentives for housing, edu to boost growth

SBI Chairperson Arundhati Bhattacharya today pitched for a slew of tax incentives for housing and education loans in the forthcoming Budget for boosting economic growth.
"There would a number of things that we would look to the government in the Budget because this would ultimately result in better growth," she said.
"Interest subvention on housing loan. At this point of time, the housing loan amount eligible for it is only Rs 15 lakh. This should be increased to Rs 25 lakh and the cost of the house should be increase from Rs 25 lakh to Rs 35 lakh," Bhattacharya said at Delhi Economic Conclave.

Similarly, she said, if government can provide some additional deduction of Rs 50,000 over and above the existing limit of Rs 1 lakh.
This would also be a major booster for the economy, she added.
At the same time, interest subvention on eduction loan could be extended to those based on income criteria.

"The present deduction under section 80c for payment of tuition fee is up to Rs 1 lakh. There again, government can provide another Rs 1 lakh to cover repayment of principle amount... This reduction could also be available to parent or spouse," she said.
"This will go towards making of better India. Therefore, something that can be imminently considered," she added.

In respect of agriculture, she said the banking sector has been pushing for subvention for the term loan rather than for the crop loans.
Given the very short nature of existing crop loan scheme, it has not been able to create better infrastructure in the farm sector.
With regard to financial inclusion, she said interest subvention should be made available for all Self Help Groups (SHGs) on similar lines as available to short term agriculture loan.