Rs.1L Deduction to First – Home Buyers: Budget 2013 Proposes

Recently announced Budget 2013-14 has proposed Rs.1L Deduction to the home buyers who will be buying their first home.

Those who are preparing to own their first home will be glad to hear that they will be given Rs.1L as deduction in their interest. However the new proposal of Budget 2013 will be helping only the first time home buyers and not the entire home buyers who aim to gain their second or third homes.

According to the experts’ opinion the new proposal will boost the developers to come up with new launches and projects. The demand for the fresh launches will be more, as the deduction is mainly for the first time home buyers.

However this proposal alone was included in the Budget 2013-14 as a boost to the real estate sector. Though the real estate developers and players were expecting many reforms in the real estate sector majority of them are not included in the new budget.

The much awaited real estate regulatory bill, single window clearance, infrastructure status to the housing sector, etc. were not included in the budget submitted by the finance ministry on February 28.

The budget 2013 was predicted to be a real estate friendly one. However as against the predictions, the budget remained a moderate one.

One of the main aspects of the budget was that the budget did not lay any overburden on the shoulders of the poor and middle income class home buyers. Though the home buyers are not supported much they are not levied any higher loads.

The deduction of Rs.1L is the sole compensation which the realty sector will be having from the budget.

Realty experts opine that the deduction will be boosting the housing sale in the industry. However the deduction will be applicable for the home loans below Rs.25L. There are many who say that the amount should have been raised up to Rs.35 L.

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