By Accommodation Times News Service
In an upcoming budget 2013, FICCI has demanded provision to raise the limit for deduction for principal repayment. In a statement FICCI said that in case of home loan repayment the ceiling under tax benefits is capped at Rs 1,00,000/- for principal paid, the ceiling of Rs 1,00,000/- under Section 80C is less particularly when home loan principal repayments are clubbed with other tax saving instruments.
Therefore the deduction for principal repayment of housing loan under 80C should be either increased from the existing limit of Rs 1 lakh or the principal repayments treated as a separate tax exemption entity and excluded from benefits under 80C. FICCI also demanded deductions for ground water. The statement added, deductions for ground rent should be restored while computing the income under the head house property.
Adding further said considering the rising value and proportionate ground rent in metros and other big cities, it is recommended that the deduction for ground rent be separately provided i.e. in addition to the overall statutory deduction of 30% available within the ambit and scope of section 24 of the Act.