Budget 2024: Will the Modi Government Expand Tax Benefits to Boost Affordable Housing?
The real estate sector is hoping for a boost in the upcoming budget with the expansion of tax benefits under Section 80EEA to promote affordable housing.
Union Budget 2024Real EstateAffordable HousingTax BenefitsSection 80eeaReal Estate MumbaiJul 22, 2024
One of the key expectations is the expansion of tax benefits under Section 80EEA, which provides a deduction for interest on loans taken for specific house properties. The maximum deduction under Section 80EEA is Rs 1,50,000 per financial year, and stakeholders are hoping that the government will not only reintroduce but also expand these benefits.
The affordable housing segment has been tremendously benefitted by the Pradhan Mantri Awas Yojana during the Modi 2.0 term, and now there is a growing expectation that Finance Minister Nirmala Sitharaman will take measures to further promote affordable housing.
Section 80EEA of the Income Tax Act, 1961, which came into effect on April 1, 2020, provides a deduction for interest on loans taken for specific house properties. The maximum deduction under Section 80EEA is Rs 1,50,000 per financial year. This deduction is calculated based on the interest paid on the home loan, with a maximum limit of Rs. 1.5 lakh per financial year, subject to specific conditions.
The real estate sector is hopeful for reform measures that will stimulate both demand and supply. Tax benefits on home loans are provided under Section 24, Section 80C, and Section 80EE of the Income Tax Act, 1961. Home buyers across India are eagerly anticipating meaningful reforms to make property ownership more accessible and affordable.
Frequently Asked Questions
What is Section 80EEA?
Section 80EEA of the Income Tax Act, 1961, provides a deduction for interest on loans taken for specific house properties.
What is the maximum deduction under Section 80EEA?
The maximum deduction under Section 80EEA is Rs 1,50,000 per financial year.
Who is eligible for tax benefits under Section 80EEA?
Home buyers who have taken a loan for a specific house property are eligible for tax benefits under Section 80EEA.
What is the expected roadmap for the real estate sector in the upcoming Budget 2024?
The real estate sector is hoping for reform measures that will stimulate both demand and supply, including the expansion of tax benefits under Section 80EEA.
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