Posts Tagged ‘Home Loan’

Salaried peoples expectations from Budget 2017-18


Salaried peoples expectations from Budget 2017-18

New Delhi: Finance Minister Arun Jaitley unveils the budget on 1 February. The salaried class has a lot of expectations from the Budget. Increase in the personal income tax exemption limit and a higher deduction limit on home loan interest are among the common ones, say analysts.

The following salaried people’s expectations from FM Jaitley’s Budget 2017-18:

1. Raise minimum limit for taxable income

Considering the increase in cost of living, the current basic exemption limit of 2.5 lakh should be raised to Rs. 3 lakh. If the minimum limit is increased, it will not only benefit taxpayers at the bottom but also salaried class youth who are starting out as employees.

2. Change in tax slabs

A Change in of tax slabs will be a big balm for the salaried class. Currently, 10 per cent tax is charged on annual income of Rs 2.5 lakh to Rs 5 lakh, 20 per cent on Rs 5 lakh to Rs 10 lakh and 30 per cent on income above Rs 10 lakh. The first two slabs can be widened or taxed at a lower rate.

3. Raise exemption limit on allowances

Salaried employees enjoy exemption from tax on several allowances/benefits that the employer provides such as children’s education, conveyance, medical reimbursement, house rent and leave travel. The allowance limits were fixed a long time ago and need to be revised in view of inflation.

4. Increase deduction under Section 80C

Currently, deduction under Section 80C of the Income-tax Act is allowed from Rs 150,000 to Rs 300,000. If Jaitley increases the limit, he can boost household savings which can ultimately get invested and power growth.

5. Bring back deduction on infrastructure bonds

The government may reintroduce deduction of Rs 20,000 or actual amount invested, whichever is lower, for investments made in infrastructure bonds. This will also boost spending, spur growth and create more jobs.

6. Offer more incentives for NPS investment

Jaitley can offer more incentives for taxpayers to invest in the National Pension System (NPS). He can increase the deduction under Section 80CCD (1B) to Rs 100,000 from the existing Rs 50,000. He can also being NPS on par with the Employees Provident Fund or Public Provident Fund with respect to exemption of 100 per cent of the accumulated balance on withdrawal, subject to certain conditions.

7. Offer interest subvention on home loans

Prime Minister Narendra Modi has already offered interest subvention of 3 per cent and 4 per cent for loans of up to Rs 12 lakh and Rs 9 lakh, respectively, under the Pradhan Mantri Awas Yojana. However, these subventions are targeted at buyers in Tier 3 cities. Budget 2017 has scope of offering interest subvention on larger amounts of loan which will benefit buyers in big cities and other urban areas.

8. Allow higher deduction on home loan EMIs

Currently, the deduction available on interest on home loan is up to Rs 2,00,000. The deduction can be claimed on the principal repayment for up to Rs 1.50 lakh. There is a large scope in both cases to raise the deduction limits.

9. Allow early deduction on home loan EMIs

Deduction for interest on home loan is currently available only after the buyer gets the possession of the property. This means the benefit begins several years after the buyer gets the home loan and begins paying the EMIs. This deduction can be given right from the payment of the first EMI.

10. Raise exemption limit for senior citizens

The existing exemption limit of Rs 300,000 for senior citizens (60 years to less than 80 years) and Rs 500,000 for super senior citizens (80 years and above) could be enhanced to Rs 400,000 and Rs 600,000 respectively.


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Be the first to comment - What do you think?  Posted by admin - January 18, 2017 at 4:55 pm

Categories: Income Tax, IT Exemption   Tags: , , , , , , , , , ,

Home Loan Interest Rates : Different rate of interest on home loans charged by banks

Home Loan Interest Rates : Different rate of interest on home loans charged by banks…
Minister of State for Finance replied to a question in Lok Sabha on 22nd February 2013 regarding rate of interest on home loans being charged by various Scheduled Commercial Banks is given below…
Interest rates on advances have been de-regulated by the Reserve Bank of India (RBI). The banks determined their actual lending rates on loans and advances with reference to their Base Rate and by including such other customer specific changes as considered appropriate.
As per the guidelines of RBI, Base Rate system has been introduced in the banks with effect from 01.07.2010 and all loans sanctioned/ disbursed on or after 01.07.2010 are linked to the Base Rate. Since Base Rate arrived at by banks is based on cost of funds and various other factors of respective banks, the Base Rate of individual banks varies. Since interest rates of housing loans are linked to the Base Rate, there is variation in interest rates offered by various banks.
There is no such proposal to issue instructions to all the banks to offer home loans to the consumers at a uniform rate of interest.
The complete details of present rate of interest being charged on home loans by different banks is annexed below…


Sl. Name of the Bank As on January 10, 2013 (In %)
No Minimum Maximum
1 Allahabad Bank 10.2 10.95*
2 Andhra Bank 10.5 11.75
3 Bank of Baroda 10.75 12.25
4 Bank of India 10.5 10.75
5 Bank of Maharashtra 10.5 12.25
6 Central Bank of India 10.25 10.5
7 Corporation Bank 10.5 11
8 Canara Bank 10.5 10.75
9 Dena Bank 10.45 11.75
10 Indian Bank 10.5 12
11 Oriental Bank of Commerce 10.4 11
12 Punjab National Bank 10.5 11.25
13 State Bank of India 10 10.15
14 Vijaya Bank 10.25 11.25*
15 Union Bank of India 10.5 13.25*
16 IDBI 10.25 11.50*
17 Indian Overseas Bank 10.25 11.25*
18 Punjab and Sindh Bank 10.5 11
19 State Bank of Bikaner & Jaipur 10.4 10.5
20 State Bank of Hyderabad 10.25 10.25
21 State Bank of Mysore 11 12
22 State Bank of Patiala 10.5 12.75
23 State Bank of Travancore 10.25 10.5
24 Syndicate Bank 10.5 12
25 UCO Bank 10.2 10.20*
26 United Bank of India 10.7 11
* as on 19.02.2013.

Be the first to comment - What do you think?  Posted by admin - March 12, 2013 at 4:50 pm

Categories: General news, Loan   Tags: , , , , ,

Additional Deduction of Interest upto Rs.1 Lakh on Home Loan for First Home Buyer

Additional Deduction of Interest upto Rs.1 Lakh on Home Loan for First Home Buyer


The Finance Bill 2013-14 proposes additional tax benefit to the first – home buyer who takes a loan for an amount not exceeding Rs.25 lakh. Presenting the Union Budget in the Lok Sabha today, the Finance Minister Shri P.Chidambaram proposed that a person taking a loan for his first home from a bank or a housing finance corporation upto Rs.25 lakh during the period 1.4.2013 to 31.3.2014 will be entitled to an additional deduction of interest of Rs.1 lakh.

The Finance Minister hoped that this will promote home-ownership and give a filip to a number of industries like steel, cement, brick, wood, glass etc besides jobs to thousands of construction workers.

This deduction will be over and above the deduction of Rs.1.50 lakh allowed for self-occupied properties under Section 24 of the Income Tax Act. If the limit is not exhausted, the balance may be claimed in AY 2015-16.


Be the first to comment - What do you think?  Posted by admin - February 28, 2013 at 4:40 pm

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Foreclosure charges / Pre-payment penalties on Housing Loan

Foreclosure charges / Pre-payment penalties on Housing Loan

Pre-Payment Penality on Home Loans
Reserve Bank of India (RBI) in its monetary policy, during 2012-13 has announced not to permit banks to levy foreclosure charges/pre-payment penalties on home loan on a floating interest rate basis.
Further, National Housing Bank (NHB) which regulates the Housing Finance Companies (HFCs) have advised them not to levy pre-payment charges on the borrowers where the housing loan is on floating interest rate basis. Further, NHB has also advised the HFCs not to levy any pre-closure charges even where the housing loan is on fixed interest rate basis and the loan is pre-closed by the borrowers out of his own sources.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

Be the first to comment - What do you think?  Posted by admin - June 13, 2012 at 1:00 pm

Categories: Loan   Tags: , , , , , , ,