Budget 2019 hikes tax break on interest paid on loan to rs 3.5 Lakhs

Budget 2019 hikes tax break on interest paid on loan to rs 3.5 Lakhs

The Finance Minister of the new government, under the leadership of Narendra Modi, has been gearing up for presenting the Monsoon Budget for 2019 – 2020. The entire nation has its eyes glued to the event as the government promised several changes in the financial sector and related areas. Before the election, Modi declared that if the people bring him to power, then his government will take the necessary steps to revamp the entire financial system. He also promised several benefits for ordinary people. Now that the budget has been presented in the parliament, it is time to analyze the pros and cons.

Home Loan Tax Deduction Rate

Session of the budget Monsoon Union Budget
Announced by Narendra Modi
Budget presented by Nirmala Sitharaman
Date of budget presentation July 2019

 

A pleasant surprise for the home loan borrowers

During announcing the Union Budget, the Finance Minister highlighted the achievements of the Modi government. She also mentioned that under Modi, Indian trade and commerce market has flourished. After that, she started declaring the schemes and financial respites that the central government wants to offer to the common people. Amount the other announcements; the minister announced a special package that will bring a smile on the face of the people who have purchased a home with a loan or have already applied for a home loan. The minister said that the central government would offer more tax deduction benefit to such creditors and loan applicants.

Rate of tax deduction

During the last Union Budget announcement, the then Finance Minister Arun Jaitley made several announcements, which offered relief to the people who had applied for a home loan. He announced that all such candidates were entitled to receive a tax deduction benefit of Rs. 2 lakhs. Earlier, this tax deduction benefit rate was around Rs. 1.5 lakhs.

During the Budget announcement, made by Mrs. Nirmala Sitharaman, this tax deduction benefit was raised even higher. She mentioned that the earlier deduction rate of Rs. 2 lakhs is henceforth increased to Rs. 3 lakhs. It will apply to those home owners who have purchased a home that costs either equal to 45 lakhs or less than that. People, who have already applied for the loan, will get this perk. Additionally, individuals who are thinking of applying for a housing loan from any nationalized or registered private bank will also receive this tax deduction advantage. This scheme will help home buyers to save a substantial sum, which can be used for other purposes.

More details on this scheme

The Union Budget has just been presented in the parliament. It was followed by the presentation and analysis of the economic survey report. Not much information is available on at this point. As the respective government comes with the details of the scheme, you will get it first on this portal. For now, home loan applicants can rejoice at the latest declaration.

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Updated: July 6, 2019 — 5:51 am