Interest deduction on home loans raised by Rs 1.5 lakh to Rs 3.5 lakh for affordable housing

Agencies
July 6, 2019

New Delhi, Jul 6: Finance Minister Nirmala Sitharaman Friday raised tax deduction limit to Rs 3.5 lakh on interest paid on housing loan sanctioned during this fiscal for purchase of first home worth up to Rs 45 lakh, a move aimed at boosting the affordable housing segment.

Besides, the government will initiate reform measures to promote rental accommodations and will finalise and circulate a model tenancy law to states, the minister said.

In her maiden Budget, Sitharaman announced that 1.95 crore homes will be provided to eligible beneficiaries till 2021-22 under the Pradhan Mantri Awas Yojana - Gramin (PMAY-G). The regulation of housing finance companies will now be done by the Reserve Bank of India instead of the National Housing Bank, she added.

To align definition of affordable housing under the Income Tax Act with GST Acts, Sitharaman proposed to increase the limit of carpet area from 30 square metre to 60 square metre in metropolitan regions and from 60 square metre to 90 square metre in non-metropolitan areas. The cost of the affordable house has been fixed at Rs 45 lakh and below.

The finance minister said the interest paid on housing loans is currently allowed as a deduction to the extent of Rs 2 lakh.

"In order to provide a further impetus, I propose to allow an additional deduction of up to Rs 1.5 lakh for interest paid on loans borrowed up to March 31, 2020 for purchase of an affordable house valued up to Rs 45 lakh," she added.

The minister elaborated that a person purchasing an affordable house will now get an enhanced interest deduction of up to Rs 3.5 lakh. "This will translate into a benefit of around Rs 7 lakh to the middle-class home buyers over their loan period of 15 years."

As per the budget document, this interest deduction will be subject to condition that the loan has to be sanctioned during the current fiscal only. The home buyer should not have any other residential property in his name on the date of sanction of loan.

To achieve the goal of 'Housing for All' and affordable housing, Sitharaman said a tax holiday has already been provided on the profits earned by developers of affordable housing.

Sitharaman proposed that several reform measures would be taken to promote rental housing.

"Current rental laws are archaic as they do not address the relationship between the lessor and the lessee realistically and fairly. A Model Tenancy Law will also be finalised and circulated to the states," she added.

On land parcels held by the public sector units, the finance minister said that large public infrastructure as well as affordable housing projects could be developed.

Sitharaman said the Pradhan Mantri Awas Yojana Gramin (PMAY-G) aims to achieve the objective of 'Housing for All' by 2022 and a total of 1.54 crore rural homes have been completed in the last five years.

"In the second phase of PMAY-G, during 2019-20 to 2021-22, 1.95 crore houses are proposed to be provided to the eligible beneficiaries," she added.

These houses are being provided with amenities like toilets, electricity and LPG connections. With the use of technology, the DBT platform and technology inputs, average number of days for completion of houses has come down from 314 days in 2015-16 to 114 days in 2017-18.

Stating that efficient and conducive regulation of the housing sector is extremely important, the National Housing Bank (NHB), besides being the refinancer and lender, is also the regulator of the housing finance sector.

"This gives a somewhat conflicting and difficult mandate to NHB. I am proposing to return the regulation authority over the housing finance sector from NHB to RBI. Necessary proposals have been placed in the Finance Bill," she added.

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News Network
October 7,2024

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Mangaluru, Oct 7: In a heartbreaking turn of events, the search for Mumtaz Ali, chairman of Misbah Group of Educational Institutions, ended with the discovery of his mortal remains in the Phalguni river near Kulur. The somber discovery came after an exhaustive search, leaving a community in shock and sorrow.

He is the younger brother of former MLA Mohuiddin Bawa and former MLC B M Farookh. 

The incident has taken a deeply distressing turn with the filing of an FIR against six individuals, including a woman, who are accused of pushing Ali to a tragic end. 

The accused allegedly blackmailed Ali, fabricating a story about his involvement in an illicit relationship with the woman. Reports suggest that they extorted Rs 50 lakh from Ali and were unrelenting, demanding an additional Rs 50 lakh from him, casting a shadow over his final days.

The complaint, lodged by Ali’s grieving brother, accuses these individuals of driving him to despair through relentless blackmail and false accusations, ultimately leading him to take the tragic step.

In the early hours of Sunday, Ali left his home at 3 am, heading towards Suratkal, perhaps seeking some solace. A minor accident occurred when his car collided with a private bus near MCF. Despite the mishap, he offered a heartfelt apology to the bus driver and conductor—a gesture that now echoes with the pain of his unspoken struggles. After the collision, Ali made a U-turn near Panambur circle, driving back towards Kulur bridge, where his journey came to a sorrowful end.

Ali’s last moments hold an even deeper sadness, as he left behind a voice message in Byari, naming an individual who had been tormenting him mentally. Sent to his daughter and a close friend, the message revealed the unbearable burden he was carrying, hinting at his final decision to end his suffering.

This tragic loss has left the community and his loved ones grappling with unanswered questions and a profound sense of grief. As the investigation unfolds, the memory of Mumtaz Ali lingers, a reminder of the silent battles that too often go unseen.

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News Network
October 1,2024

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Mysuru, Oct 1: The Karnataka Lokayukta team on Tuesday arrived at the disputed plot in Mysuru and began investigation into the MUDA case against CM Siddaramaiah and his wife, news agency ANI reported. Snehamayi Krishna, the complainant in the case was also present with the team.

Sources stated that ED sleuths might issue a notice to CM Siddaramaiah at any time and issue summons to him for questioning. The sleuths are also keenly watching the movements of CM Siddaramaiah’s close associates and relatives, including a cabinet minister in connection with the MUDA scam.

Sources further said that there is a possibility of the ED conducting raids across the state on offices and residences of close associates of CM Siddaramaiah. The ED has also gathered information on bank accounts and financial transactions of CM Siddaramaiah and his associates.

The Directorate of Enforcement (ED) on Monday registered an Enforcement Case Information Report (ECIR), equivalent to an FIR by the police, against CM Siddaramaiah over the alleged irregularities in the allotment of 14 sites to his wife Parvathi B.M. by the Mysore Urban Development Authority. The ED registered the case taking cognisance of the FIR registered against the Chief Minister by the Lokayukta police on September 27.

Meanwhile, the Karnataka Lokayukta probing the MUDA case has also expedited the probe. The sleuths led by Mysuru Lokayukta SP T.J. Udesh have visited the controversial land on the outskirts of Mysuru city. The petitioner, Snehamayi Krishna, also accompanied the team.

The move of Chief Minister Siddaramaiah’s wife to return 14 sites allotted by the MUDA to her has triggered a debate. BJP MLA from Mysuru T.S. Srivatsa stated on Tuesday that the move of CM’s wife is not acceptable. "The two commissioners who colluded in the MUDA scam are roaming freely even today," he said.

"CM Siddaramaiah first claimed that there was no scam at all. Later, he formed a commission and now there is an FIR against him. After committing the mistake, you offer to return the sale deed. The time is up. He will have to tender his resignation and I am sure he won’t be in the position until Dasara festivities," MLA T.S. Srivatsa stated.

T.J. Abraham, one of the petitioners in the MUDA case said, “I had demanded the MUDA commissioner to take back the allotted sites. He had written back saying the process would be initiated. They were waiting for the investigation report."

"CM Siddaramaiah has not approached the division bench or the Supreme Court to challenge the order against him because there is nothing to be challenged. Returning sites is not a big sacrifice. The Chief Minister has lost it," Abraham stated. 
 

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News Network
September 28,2024

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Bengaluru, Sep 28: The Special Investigation Team (SIT) probing charges against arrested Karnataka BJP MLA N. Munirathna Naidu, including allegations of rape, honey-trapping, and other offences, on Saturday conducted raids at his residence and 15 other locations across the city.

Sources confirmed that the raids were taking place at his Vyalikaval residence and other properties owned by the BJP MLA. The operation is being conducted by the SIT under the Criminal Investigation Department (CID) led by ACP Kavitha.

The team is examining documents, electronic devices, and other materials related to the rape and honey-trapping case. The SIT is being supported by experts from the Forensic Science Laboratory (FSL), with Superintendent of Police (SP) Sowmya Latha also participating in the search and inspection at Munirathna’s Vyalikaval residence.

According to sources, the raids were triggered by information provided by the victim, who alleged that Munirathna recorded footage of sexual assaults and used it to blackmail politicians and public servants, including IAS and IPS officers.

The victim reportedly revealed that she was used to entrap the woman who had lodged a rape case against a senior IFS officer. She was allegedly instructed to frame the rape victim in a drug peddling case.

The complainant told police that she was tasked with capturing compromising videos of the rape victim who had filed the case against the IFS officer. She claimed that, after several failed attempts to obtain the videos, the victim was drugged with sleeping pills, and obscene footage was recorded without her consent. Later, the IFS officer was bailed out from the charges.

Furthermore, the complainant has accused MLA Munirathna of raping her at his office within the state legislature, in his official vehicle, and at his godown. She has alleged that he recorded videos of these assaults.

Police sources also revealed that the victim in the MLA's case provided details of a plot involving sending HIV-infected women to Munirathna's targets in an attempt to ruin them politically and personally. She also disclosed the names of several politicians whom she had entrapped through honey-trapping.

The woman further claimed that Munirathna had threatened to have her son kidnapped and killed if she refused to comply with his demands. According to her, the MLA had a well-organised team dedicated to carrying out these honey-trapping operations, and she provided details about his close associates and relatives involved in the scheme.

Munirathna, who was in judicial custody following his arrest in the rape and honey-trap case, has now been taken into the custody of the SIT.

The MLA was transferred from Bengaluru Central Jail to the CID office on the night of September 24. The BJP legislator, however, has denied all the allegations, claiming they are false.

Karnataka Congress leader D.K. Suresh had alleged that Munirathna was trying to infect his adversaries with HIV and that the government should investigate the matter.

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