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With EMI burden rising, will Budget 2023 give more sops to home buyers?

Real estate experts say that tax deduction benefits to repay principal and interest amounts haven’t been raised in many years. Interest rate hikes and increased demand through the Covid pandemic should nudge the government to give sops to home-buyers, they add.

December 09, 2022 / 08:06 AM IST
Representational image.

Representational image.

The last three years have been good for homebuyers. Low interest rates amid the Covid-19 pandemic outbreak and subdued home prices fuelled rising demand for homes as people shifted to working remotely as offices shut down.

Home loan rates have since gone up, but demand for housing is still intact. Experts believe that to sustain demand, the government should introduce homebuyer-friendly measures in Budget 2023.

Separate deduction for home-loan principal repayment

This is a long-pending demand. The deduction limit under Section 80C is up to Rs 1.5 lakh. But the basket of eligible investments and expenses for this deduction is packed with nearly 10 items, one of which is principal repayment on a housing loan.