Budget 2020: Tax benefit for the housing loans extended for another year

To boost affordable housing demand, Finance Minister Nirmala Sitharaman announced an extension in the tax sops available for home loan borrowers. The benefit under section 80EEA has been extended by one more year.

In her maiden budget in July, the finance minister had introduced a section 80EEA that offered an additional Rs 1.5 lakh towards the interest payment on home loans, if the loan was sanctioned in financial year 2019-2020 for a person who does not own any other house. And the stamp value of the property was expected to be below Rs 45 lakh. Now the same benefit will be available for loans availed in financial year 2020-2021.

Contrary to expectations, the finance minister opted to leave the limit of Rs 1.5 lakh under section 80C unchanged. Also the maximum benefit of Rs 2 lakh under section 24 of the Income Tax Act, towards the interest paid to service a home loan in a financial year, remained unchanged.