First-time home buyers to get Rs 1 lakh additional tax break

MUMBAI, FEB. 28:  

To encourage first-time home buyers, the Union Budget has proposed an additional Rs 1 lakh interest deduction from their gross total income on loans up to Rs 25 lakh.

Given the Rs 25 lakh loan limit for getting the additional interest deduction benefit and the high property prices in most of the metros and urban areas, first-time home buyers will be able to buy houses only on the fringes of metros/urban areas, semi-urban and rural centres.

In his Budget speech, Chidambaram proposed that a person taking a loan for his first home from a bank or a housing finance corporation (HFC) up to Rs 25 lakh from April 1, 2013 to March 31, 2014, will be entitled to an additional deduction of interest of Rs 1 lakh.

Read more >> Click here