By Dipak K Dash
NEW DELHI: The government should remove the five-year limit for availing income tax benefits for home buyers as delays by builders has made it difficult to seek the relief, a national flat buyers association has demanded.
Under present rules, a home buyer can avail tax deduction up to Rs 2 lakh on interest paid even if the house is ready in five years from the end of the finance year in which the home loan was taken. The buyer gets the tax benefit after taking possession of the house.
“The limitation clause is punishing the home buyers for no fault of their as delay in getting possession is due to fault of builders,” Fight for RERA has written to finance minister Arun Jaitley.
It also suggested that in case where assessee is paying both EMI and rent and the date for handover of possession has not been met by builders, there should be a provision for deduction of EMI paid from total income of such assessee over any other deduction that is being provided currently.
(This article was originally published in The Times of India)
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Via:: Economic times – Wealth