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

A statue of Ganesh, the deity of prosperity, is carried in a taxi to a place of worship on the first day of the ten-day-long Ganesh Chaturthi festival in Mumbai August 29, 2014. REUTERS/Danish Siddiqui

Ganesh Chaturthi Festival

During Ganesh Chaturthi idols will be taken through the streets in a procession accompanied by dancing and singing, and will be immersed in a river or the sea in accordance with Hindu faith.  Slideshow 

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)

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