Govt Likely to Extend Sops For Affordable Homes by Year

The government is likely to extend incentives for purchases of affordable homes, those priced up to Rs 45 lakh, by a year as it falls short of its goal to provide “housing for all’. Finance minister Nirmala Sitharaman is likely to extend the additional interest deduction of Rs 1.5 lakh on affordable housing loans till March 2023. This additional deduction benefit over and above the Rs 2 lakh that was first announced in July 2019 has since been extended twice, with the latest extension available till 31 March. However, only first-time homebuyers can avail of the incentive. Affordable housing remains a major focus of the government, and steps to boost the housing and construction industry are likely to feature in the budget for the year starting April 1. The tax holiday on affordable housing projects is also likely to be extended by a year Last budget, Sitharaman announced the extension of the tax holiday till March-end. Along with tax benefits, companies and industry experts have also sought a change in the definition of affordable housing to extend the benefits of additional deductions to more homebuyers.