Every Budget brings with it a mountain of expectations across various sectors and strata of people and this year’s Budget, which will be presented on February 1, will be no different. On top of the wishlist is the increase in tax exemption limit under Section 80c from the present Rs 1.5 lakh to Rs 2 lakh, which will facilitate the common man to save more and pay less tax. This also would increase the exemption on housing loan principal portion which is a part of Section 80c exemptions. This would definitely be a big boost for millions of home loan borrowers.
Next is to seek increase in tax deduction limit on housing loans for single women borrowers. This would, surely, be a good Women’s Day (March 8) gift to working women, who are employed through various professions.
One of the common wishes is to seek an increase in taxable income limits; the present taxable income limit is Rs 2.5 lakh which people want to be increased to Rs 3 lakh.
First time home buyers too are expecting if the additiol deduction of Rs 50,000 under Section 80 EE could be increased. One of the conditions to avail this deduction is that the value of property should not exceed Rs 50 lakh irrespective of location and size of the house. Considering that the affordable housing initiative has taken off well, there would be a tural surge in first time house buyers which would motivate them further.
Any losses from house property are allowed to be set off against other income to the extent of Rs 2 lakh as per the prevailing provisions. There is an expectation that the limit be increased to at least Rs 3 lakh from the coming fincial year. Any losses exceeding Rs 2 lakh in a fincial year can be carried forward to future eight assessment years and set off against any gains made during said number of years.
With rise in property prices and prevailing loan rates, the current limit seems a bit low and perhaps requires an increase. Most of the goodies have already been doled out by way of introduction of Real Estate Bill, RERA Act and announcing of the affordable housing initiative which is already in full swing. There may not be much in this budget for housing per se, yet any small step would surely cheer up home buyers who would not mind the possibility of having a bit more cash in their wallets.
Kalyanpur, Biswath Chariali.