Rajeev Talwar, CEO, DLF Ltd, and Chairman, NAREDCO

25 Jan 2021 CW Team

Interest on housing loans should be fully allowed under income tax deduction without any ceiling. The current limit of interest deduction under Section 24 of IT Act 1961 on housing loans of Rs 0.2 million should be removed to incentivise home buyers and spurring overall demand. Also, loss from house property should be fully allowed to be adjusted against other heads of income. In case of unadjusted loss, it should be fully allowed to be carried forward to subsequent years.

RBI, through a notification in 2017, allowed a LTV of up to 90% for home loans for affordable houses of Rs 0.30 million or less. The same facility should be permitted for other housing including MIG and HIG as well.

Resources

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