Budget 2013 -Income tax Benefit with home loan

POSTED BY Jayesh ON March 2, 2013 10:45 pm COMMENTS (2)

hello All

Some questions on the budget 2013.

As per the new budget announcement Home buyers can claim an additional deduction of interest of Rs 1 lakh to be claimed in 2014-15 over and above the deduction of Rs 1.5 lakh available now for loan upto 25Lakh”

Say if this is finalized in the budget 2013, then 

1. Is this benefit only for direct home buyers (ready to occupy) or its valid for the homeloan taken for construction purpose too?

2.Will this be considered for loans sanctioned by banks after April 1st Or only for loan applications after april 1st.

My loan is for construction purpose & is in sanctioning process with the bank now. so i’m not sure if this will benefit me or not if i sign the loan agrrement after april 1st.

request for your comments and advice.

Thanks in Advance

Jayesh

2 replies on this article “Budget 2013 -Income tax Benefit with home loan”

  1. Credexpert says:

    Dear Jayesh,

    As per the Finance Bill of the Union Budget 2013-14, the deduction is for the purpose of acquisition of the residential house property. We would have to wait to examine the fine print for further clarifications on whether “acquisition” includes construction as well.

    The deductions would be applicable for loans sanctioned by financial institutions (i.e. Banks and Housing Finance Companies) between April 2013 – March 2014.

    Regards,
    Credexpert

  2. Dear Jayesh, let the wise men (dear Finance Minister & his staff) give some more clarity on these things after passing the budget in the parliament.

    By the way – it gives an Indication what may happen in DTC if it comes at all in current govt.’s term regarding home loan interest benefit. if it happens at all in dtc, please say thank you to dear Manish & me as you read it first here in the forum. 🙂 🙂

    thanks

    Ashal

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