Latest News | Real Estate News | Property News | Real Estate Blogs | Mumbai Property News » budget 2016-17 india http://shopsandhomes.com/blog Sale, Rent and Buy any property in Mumbai Thu, 23 Feb 2017 11:03:57 +0000 en-US hourly 1 Budget 2016-17: Brings Cheer for First-Home Buyers http://shopsandhomes.com/blog/index.php/2016/03/budget-2016-17-brings-cheer-for-first-home-buyers/ http://shopsandhomes.com/blog/index.php/2016/03/budget-2016-17-brings-cheer-for-first-home-buyers/#comments Mon, 21 Mar 2016 05:00:25 +0000 http://shopsandhomes.com/blog/?p=3266
Budget 2016-17

Budget 2016-17

In today’s scenario where possession of the property within stipulated time is a challenge, Budget 2016-2017 proposes tax relief under Section 24 of I-T Act on interest payment on home loan if the property bought, or under construction, is completed within 5 years from the end of the financial year in which the loan was availed instead of the current 3 years. This could actually help save tax up to Rs. 60000.

In addition to above, Finance Minister Arun Jaitley has announced an additional interest deduction of Rs. 50,000 a year for loans up to Rs. 35 lakh sanctioned during 2016-17 provided cost of the house does not exceed Rs. 50 lakh.

Tax benefits in FY 2016-17 for home loan borrowers are summarized below:

Tax Benefits On Principal Repaid On Interest Paid
First Home – Self Occupied No change – Up to Rs. 1.5 Lakh (Rs. 2 Lakh for senior citizens) Up to Rs. 2 Lakh if completed within 3 years from the end of the FY in which loan is taken, else Rs. 30,000. Additional exemption of up to Rs. 50,000 on interest paid for loans up to Rs. 35 lakh with cost of home up to Rs. 50 lakh
First Home – Rented/ Vacant No change – Upto Rs. One Lakh Fifty Thousand (Rs. Two Lakh for senior citizens) if staying in a different city for work No change – On entire interest paid without any limit
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