This Union Budget 2019, the Finance Minister Nirmala Sitharaman gave homebuyers a reason to smile when she announced an additional income tax deduction of Rs. 1.5 lakh on home loan interest payments. The tax benefit is applicable for home loans amounting upto Rs. 45 lakh. The deadline for homebuyers to avail the benefit is till 31 March 2020.
Currently, as per Section 24 of the Income Tax Act (1961), the tax benefit on the housing loan interest payments is upto Rs. 2 lakh annually. After today’s announcement, the benefit for home loan borrowers in the affordable housing category has increased from Rs. 2 lakh to Rs. 3.5 lakh annually.