On Monday, February 1, Finance minister Nirmala Sitharaman in her Budget 2021 speech has proposed to extend the timeline for availing home loan by another year for claiming an additional deduction on interest payment on such home loans to March 31, 2022. Currently, the deadline for this March 31, 2021.
In this budget, the limit of additional concession under Section 80EEA for affordable housing has been increased to one and a half lakh for one year to boost the property sector. Tax relief on rental housing has been increased. Also, builders who build affordable housing projects will get one more year of tax relief.
Due to the outbreak of the coronavirus and the subsequent lockdown, consumers completely turned their backs on the property market. The property market suffered a loss of crores of rupees due to the halt in home buying and selling transactions throughout the year. Houses built by customers were left in a state of disrepair, while numerous construction projects witnessed a pause.
According to reports, in order to avail this concession, the concerned construction project should have gotten permission before September 1, 2019. Moreover, the price of the house should not exceed INR 45 lakhs. In addition, the home loan for this should have been taken between April 1, 2019, to March 31, 2021. For cities like Delhi, Mumbai, Bangalore, Noida, Gurugram, Hyderabad, Kolkata, the carpet area should not exceed 60 square meters or 645 square feet, while for other cities, the maximum carpet area should be 90 meters or 968 square feet.
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