Budget 2024, Homebuyers expectations : Taxpayers buying homes are hoping that Finance Minister Nirmala Sitharaman will definitely give them some relief in the budget to be presented on February 1. If seen from the point of view of homebuyers, there are many measures through which the Finance Minister can reduce the tax burden on them. Even though he has talked about not making big announcements in the interim budget, still if the government wants, it can at least consider some legitimate demands of the taxpayers.
What relief is available in income tax now?
Under the Income Tax Act 1961, some provisions have been made to provide tax relief to those buying homes by taking home loans. Under these provisions, the benefit of tax deduction is available under different sections on the interest and principal amount paid on home loan. This significantly reduces the tax liability of taxpayers adopting Old Tax Regime (OTR). But there are some limits associated with these tax benefits, which have not changed over the years. This is the reason why taxpayers are now expecting their review in the new budget (Union Budget 2024).
Deduction limit on home loan interest increased
The most important demand of homebuyers is that the existing limit on home loan interest repayment should be increased. At present, the limit of deduction under section 24(b) is a maximum of Rs 2 lakh, which was fixed 10 years ago in 2014. This means that even if you pay interest of Rs 4-5 lakh every year on your home loan, you will get tax benefit only on Rs 2 lakh. House prices have doubled or more in the last 10 years. Interest rates have also increased significantly in the last one and a half to two years. In such a situation, both the home loan required to buy a house and the interest payment on it have increased significantly. Therefore, now this limit should be increased to Rs 4 lakh. Otherwise home buyers will continue to be burdened with both interest and taxes.
Also read: Saving Income Tax: Income tax can be saved even in the new regime, employed people will get the benefit of these deductions.
Get separate discount on principal repayment of home loan
At present, the benefit of deduction under Section 80C is available on re-payment of the principal amount of home loan. But this benefit also comes within the annual over-all limit of Rs 1.5 lakh of Section 80C, in which there has been no increase since 2014. Children's school fees, life insurance premiums and most of the tax saving investments also come under this limit. Whereas in the last 10 years the school fees of children alone have doubled at least. Along with this, the need for life insurance and their premiums have also increased rapidly. In such a situation, this limit of Rs 1.5 lakh is proving to be very inadequate for all the tax payers. Therefore, a demand is also being raised that like home loan interest, there should be separate tax exemption on home loan principal repayment also. After all, a house is a basic facility for living, which is not only a need of the citizens but also a responsibility of the government. That is why the government keeps a budget to provide houses to the poor. But the government can at least give them the benefit of tax deduction for those taxpayers who take a loan to build a house and keep repaying that loan throughout their life.
Also read: Income Tax saving: This way you can also get exemption in income tax! Few people know, you can take advantage
Will there be kindness to voters before the elections?
Although this will be an interim budget, in which the Finance Minister has said not to expect big announcements. but 5 years ago In the pre-election interim budget of 2019 Ignoring tradition, the Modi government had provided relief on a large scale to voters paying taxes. This is the reason why this time also the voters are expected to be kind to the voters in the pre-election budget. After all, elections are the time when politicians trying to gain power pay maximum attention to the wishes of the common people. In such a situation, if the voters who pay huge income taxes are also expecting some of their legitimate demands to be fulfilled, then what is wrong in this?