Tax deduction on affordable housing loans extended by another 1 yr

New Delhi, Feb 1
In a bid to increase demand in the realty market, Finance Minister Nirmala Sitharaman on Monday announced to extend the additional deduction of up to Rs 1.5 lakh for interest paid on loans of purchase of affordable houses, up to March 2022.

The deduction so far was allowed on housing loans sanctioned on or before March 31, 2021.

Further, in order to boost the supply of affordable houses in the country, the Budget proposed a tax holiday on profits earned by developers of affordable housing project approved by March 31, 2021.

The measures are expected to boost demand in the subdued realty sector.