Budget 2017: Tax breaks for home loans likely to increase

Budget may raise interest deduction from Rs 2 lakh to Rs 2.5 lakh

Aiming to boost demand in the housing sector, the government may hike deduction limit for interest paid on home loans by Rs 50,000, from the current Rs 2 lakh to  Rs 2.5 lakh under Section 24 of the Income-Tax Act.

Homebuyers also enjoy deduction to the extent of Rs 1.5 lakh on principal repaid under Section 80C.  

The National Democratic Alliance government had raised the deduction limit from Rs 1.5 lakh to Rs 2 lakh in its first Budget of the current term. In last year’s Budget, Finance Minister Arun Jaitley had provided an additional deduction of