The Institute of Chartered Accounts of India (ICAI) has asked Finance Ministry to increase the tax exemption limit for home loan borrowers. It has asked to double the limit from 1.5 lac to 3 lac on home loan repayment.
The lending rates escalated to a great extent during the previous year. Among other borrowers, home loan borrowers also had to bear the heat of the rate hike by shelling out extra money on their loan.
"...it is suggested that the deduction in respect of interest on housing loan in case of self occupied property should be increased from Rs 1.5 lakh to Rs 3 lakh," said ICAI to the Finance Minister Mr. Pranab Mukherhjee in a pre-budget memorandum.
It also said, "To bring more clarity and equality in every section which deals with senior citizens, it is suggested that 60 years age shall apply uniformly in the (Income Tax) Act and accordingly appropriate amendments may be made in the Act."
The suggestions came in view to revamp the demand of home loans in the country.