Budget 2013: Additional interest deduction on home loans up to 2.5 million rupees

Thu Feb 28, 2013 7:01pm IST

Labourers work at the construction site of a residential complex in Kolkata February 22, 2013. REUTERS/Rupak De Chowdhuri

Labourers work at the construction site of a residential complex in Kolkata February 22, 2013.

Credit: Reuters/Rupak De Chowdhuri

REUTERS - People buying houses will get an additional deduction of 100,000 rupees on interest payments on their first home loan of up to 2.5 million rupees, Finance Minister P. Chidambaram said on Thursday as he unveiled one of the most highly anticipated Indian budgets in recent years.

"I propose to allow such home buyers an additional deduction of interest of 100,000 rupees to be claimed in AY 2014-15. If the limit is not exhausted, the balance may be claimed in AY 2015-16," Chidambaram said.

"This deduction will be over and above the deduction of 150,000 rupees allowed for self-occupied properties under section 24 of the Income Tax Act."

At present, interest on home loans is deductible up to 150,000 rupees annually, irrespective of the home loan amount.

(Also read: Minor change in income tax structure, click here)

(Reporting by India Online)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Reuters Showcase

Vodafone Ruling

Vodafone Ruling

Government will not appeal Vodafone tax ruling   Full Article 

Indian Railways

Indian Railways

Private refiners compete with state firm to sell diesel to railways   Full Article 

Ranbaxy Results

Ranbaxy Results

Dec-quarter net loss widens on forex loss  Full Article 

Market Eye

Market Eye

Sensex, Nifty retreat from record highs on profit-taking.  Full Article 

Tech Talk

Tech Talk

Apple takes high road in China smartphone standoff with Xiaomi.  Full Article 

Business Strategy

Business Strategy

Uber scraps commissions for its New Delhi taxis.  Full Article 

Job Cuts

Job Cuts

Sony to cut 1,000 jobs in smartphone business - sources.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage