Budget 2020 Expectations: Home loan interest payment rebate could galvanise homebuyers; see how

The real estate sector has not been doing too well. What can the government do to revive the real estate sector? Amid falling GDP growth, rising inflation, unemployment, worsening consumer sentiments, and falling consumer confidence, what are the expectations of the middle-class section interested in buying a home? Our experts Radhika Gupta, Chief Executive at Edelweiss Asset Management, and tax expert Krishan Malhotra have the answers for you.

The experts said that the government in the Budget 2020 should incentivize the homebuyers by giving rebates on interest rate payment. This could become a trigger for the people thinking of buying a house.

These experts said that they expected the government to waive off interest payment up to Rs 5 lakh on home loans. Under section 24 of the Income Tax Act, homeowners can claim a deduction of up to Rs 2 lakhs at the time of filing of the returns on their home loan interest if the owner or his family reside in the house property.

The expectations are also that the government could give income tax relief on the principal amount of the home loan.

The experts said that if the government gives some relief to the home buyers in the Budget 2020, the sentiments around the real estate sector could likely improve. Those homebuyers who are willing to buy a house but are restrained due to high-interest rates will directly benefit. At this time when the people are unsure about the economy is growing, this could be a shot in the arm for the government.

This will also help the government to take forward its program of providing affordable housing to all the experts said. This will also have a positive impact on the infrastructure as a whole.

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Only three days are left for the Budget 2020. Finance Minister Nirmala Sitharaman will be presenting Budget 2020 on 1 February.