New deduction on affordable homes benefits loans with longer tenures

Joint owners would not be able to get the additional tax deduction due to caveats

 The move to provide additional tax deduction on affordable homes will benefit borrowers who opt for long-tenured loans. The newly-introduced provisions may not result in significant savings for loans that have a tenure of below 15 years. The reason: As the tenure of a loan reduces, so does the interest outgo, resulting in lesser savings. As the new tax deduction has a cap on the property price, those opting for a joint home loan will not get the benefit.

The recent Budget has increased the deduction a taxpayer can claim for interest paid on loans if they buy affordable homes. The