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Economy

Budget 2016: More Incentives for losing money in Real Estates

The existing provisions of section 80EE provide a deduction of up to 1 lakh rupees in respect of interest paid on loan by an individual for acquisition of a residential house property.

As though the deduction claimed was too low, the finance minister has provided a few more freebies to the Real Estate Sector for an individual investment.

With the Government’s goal of ‘housing for all‘, an additional deduction up to Rs. 50,000/- will be provided for to incentivise first-home buyers availing home loans by providing additional deduction in respect of interest on loan. But remember that this cannot be availed for every piece of home. 

The condition is that the value of the house property should be less than Rs. 50 lakhs and the loan amount should not exceed Rs. 35 lakhs (applicable for the period 1 April, 2016 to 31st March, 2017). The benefit of this deduction will be provided till the repayment of loan continues.

In addition to this, if your property was not delivered to you after 3 years, your tax deduction would not have applied, but now that period has been extended to 5 years

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  • Phoenix says:

    Super observation Deepak!
    Last time he favoured insurance cos whilst providing nothing for the working class. Dicto this year except that he has favoured real estate- and this is likely to be a bad investment in any case !
    This time limit of 5 years is also nonsense. The municipality’s under- tables rates and other lethargic nonsense is legendary. Every building gets delayed by years nowadays due to all kinds of reasons including corrupt builders and fund paucity.