New Delhi: Finance Minister Nirmala Sitharaman while presenting the budget 2019 announced series of measures to make the houses more affordable. Also Read - Centre Working on Fresh Economic Package to Address 2nd Wave of Coronavirus: Report
As a tax holiday already existed on affordable housing on the profits earned by developers of affordable housing for the realization of the goal of housing for all, Nirmala Sitharaman proposed that interest paid on housing loan is allowed as a deduction to the extent of 2 lakh rupees with respect to the self-occupied property. Also Read - No Interest Cut on Small Savings Schemes: Finance Ministry Withdraws Orders 'Issued by Oversight'
For purchase of affordable housing, an enhanced interest deduction up to 3.5 lakh of rupees has also been proposed.
She also proposed to make Electric Vehicles more affordable.
“Government has already moved to GST council to lower the GST rates on electric vehicles from 12 per cent to 5 per cent. To make EVs affordable for consumers, Govt will provide additional income tax deduction of 1.5 lakh rupees on interest paid on the loan taken to purchase electric vehicles,” she said.
“As far as corporate tax is concerned, a lower rate of 25 per cent is only applicable to the companies having an annual turnover up to 250 crores which will be expanded to all companies of annual turnover up to 400 crores, 99.3 per cent of all the companies,” said Finance Minister Nirmala Sitharaman.