The home loan borrowers may have an extra reason to smile once the budget is announced. The tax exemption limit of the interest paid for the home loans may be increased to Rs. 3 lac from present Rs. 1.5 lac. The government is still pondering over the matter. The continuously soaring property rates as well as the hike in lending rates gave rise to the idea of revising the exemption limit.
The Director General of CII, Mr. Chandrajit Banerjee said, "We recommended that the existing tax deduction limit on income tax of an individual should be increased from the current level of Rs 2.5 lakh to at least Rs 5 lakh."