Budget 2013: Additional deduction of Rs 1 lakh allowed to Home loan borrowers

housing loanHome loans are the cheapest loans available in the market. May be Govt. has sniffed that, in India Real Estate is quite costly and owning a home is the most important part in each of our lives.

In Budget 2013 Finance Minister P Chidambaram in his speech announced incentives for home loan borrowers that will bring cheer to many prospective home-owners.

Incentives for home loan borrowers with a person taking a first time home loan up to Rs 25 lakh during the financial year 2013-14 will be allowed an additional tax deduction of interest of up to Rs 1 lakh.

Finance Minister said that this applicability will help in promotion of an affordable housing and will also provide opportunity of employment to many in the construction sector.

Chidambaram started his speech restating and resolving his government to cut expenditure and bring the Current Account Deficit back on track. He also pointed out how India is still the third fastest growing economy amongst the bigger countries.

As the speech progressed, the Finance Minister went on to go over UPA’s pet goal of comprehensive development. He subsequently announced many schemes & allocations for SC, ST, women, differently-abled and other schemes such as Sarv Shiksha Abhiyan & provided additional allocation for the food security plan.

While presenting his eighth Union Budget, Finance Minister P Chidambaram gave more emphasis to the need for ‘inclusive growth’ in his budget 2013 speech. The budget will focus on higher growth and financial inclusion as per the speech.

“Many people will be left behind if we do not pay attention to growth,” he said. Chidambaram said that any growth should also be sustainable.

Chidambaram acknowledged that the room for a fiscal stimulus is constrain and that deficit levels are high in our Indian Economy.

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