The favourable budget outcomes are enhancement of priority home loan limit to Rs. 25 lakhs from Rs. 20 lakhs and extension of interest subvention of 1% up to Rs 15 lakhs.
These measures would certainly assist in the home buyers in low income group, and collectively improve the housing shortage.
I also feel that on some fronts the budget came short on expectations. Especially the enhancement of exemption limit under Section 24 of Income Tax Act from the present 1.5 Lac to 3.0 Lac. It would have helped the home buyers to obtain clarity on applicability of Service Tax on under-construction property, given that VAT is anyways applicable. Specific policy directives were also expected to promote Affordable Housing, Green Building benefits for housing projects and REITSs.
