Remove ceiling on housing loan I-T rebate: BAI

In his petition to Union Finance Minister Nirmala Sitharaman, S Ramaprabhu, chairman of BAI (southern centre), said that presently an individual could claim a tax deduction of the interest payment on the housing loan up to a maximum amount of Rs 2 lakh against the actual interest component. “We request the FM to consider removing this ceiling of Rs 2 lakh,” he wrote.

Pointing out that the banks are reluctant to fund real estate project, Ramaprabhu urged the government to issue clear guidelines and criteria to banks.

“Under the Affordable Housing Scheme, people with low income are offered houses at cheaper prices. To boost the economically downtrodden, we request to waive the stamp duty. Also, the government should allow claiming Input Credit for the GST,” the representation said.

The representation urges the Finance Minister to reduce the rate for infrastructure projects of government civil engineering contractors from existing 12 per cent to 9 per cent. “GST rates for private contracts is currently 18 per cent. Since the construction industry is the key driver for the economic growth of the country, reduce the rate for private projects to 12 per cent.”

While demanding to reduce the interest rate for housing loans, the Association also sought Finance Minister’s appointment so thatthe demands could be clarified in person.