Your dream home can now be reality.
To encourage people to own houses, the government announced it would extend an additional tax incentive on home loans. Noting that the government is committed to endeavour for housing for all in the next eight years, Finance Minister Arun Jaitley said, "We will extend an additional tax incentive on home loans to encourage people, especially the young, to own houses... The government has hiked the housing interest rate deduction limit to `2 lakh from `1.5 lakh on personal home loans." The government, Jaitley said, has already outlined other incentives such as easier flow of Foreign Direct Investment in this sector and is willing to examine other positive suggestions.
While presenting the budget in parliament, Jaitley announced the setting up of a Mission on Low Cost Affordable Housing to be anchored by the National Housing Bank ( NHB).
He proposed the allocation of `4,000 crore during the current fiscal for NHB to increase the flow of cheaper credit for affordable housing to the urban poor.
Jaitley said the Rural Housing Scheme has benefited a large percentage of population who availed of credit through the Rural Housing Fund. In light of this, enhanced allocations to the tune of `8,000 crore has been made for NHB for 2014-15 to expand and support rural housing across the country.
The realty sector welcomed the move, saying it would help people in owning affordable houses and inject fresh life to the sector. Commenting on it, Anshuman Magazine, chairman and managing director of CBRE South Asia, said: "Allocating `4,000 crore for providing cheaper loans for low-cost housing to support the housing for all by 2022 scheme is a positive move.
Raising FDI in the insurance sector to 49 per cent will also bring in funds in the long-term to the infrastructure and real estate industry." Furthermore, slum development was incorporated in the list of Corporate Social Responsibility ( CSR) activities so that the private sector is encouraged to contribute more towards this activity.
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