First-Time Homes Get Tax Room

Considering the huge shortage of affordable housing in cities and towns leading to growth of slums,the government announced setting up of an urban housing fund to refinance banks and financial institutions for retail loans in urban areas.

The Budget has proposed an additional deduction of interest of up to 1 lakh for home buyers taking a loan for a first home of up to Rs 25 lakh.

To ensure availability of loans for those living in slums a dedicated fund with an initial allocation of Rs 2,000 crore in 2013-14 is being set up by the National Housing Bank.This will help in covering the shortage of 18.78 million houses of which 96% is in economically weaker section categories.

Times of India, New Delhi, 01-03-2013