The limit for medical reimbursements for a vast majority of working class stand at Rs.15000 per annum under Section 17 of Income Tax Act 1961 for years and now needs to be revised at Rs.50,000 in view of persistently rising inflation and high cost of medical expenses.
Similarly, the ceiling of interest on housing loan has not been revised for quite sometime which stays at Rs.1.5 lakh per annum and now urgently needs to be reviewed, keeping in view the rising property prices followed by high interest rates coupled with increasing inflationary pressures.
According to the PHD Chamber, this limit should be raised at Rs.5 lakh per annum to enable a vast section of working class to excess property and raise dwelling units for themselves under the flagship programmes of various state governments such as build and own your properties.
In a detailed presentation made by PHD Chamber to the Senior functionaries of the Finance Ministry, it was pointed out that the income tax limit should be hiked to a minimum of Rs.2.5 lakh, given the element of price rise in almost every commodity as the wage earners find it difficult to fund and finance their urgent needs with existing ceiling of income tax, pegged at Rs.2 lakh per annum.
It also emphasised that if the existing limit of interest on housing loan is raised to a suggested level of Rs.5 lakh, the housing activities would regain the lost momentum, especially with the new government in place which is committed to provide housing facilities for all in the next couple of years as also generate additional employment in the sector.
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