Wisejay

To get better results search whole phrases rather than keywords For example, if you are looking for risks involved in mutual funds investment then search "Risks in Mutual Funds" rather than "Risks" and "Mutual Funds" separately.

You can search for answers by service provider name. If you want to see answers by a particular service provider, search the name. You will see the questions to which the service provider answered.

Sam Ghosh Founder and SEBI Regd. Investment Adviser at Wisejay Private Limited Bangalore, Karnataka
Budget 2019: Tax deduction for interest payment on loans for affordable housing and electric vehicles
1 answer/comment
04:34:19 PM, 5th July, 2019
  • Sam GhoshFounder and SEBI Regd. Investment Adviser at Wisejay Private LimitedBangalore, Karnataka
    Hire Me

    The finance minister proposed an additional tax deduction of Rs 1.5 lakh beyond Rs. 2 lakh on interest on loans borrowed up to 31st March 2020 for purchase on an affordable housing valued up to Rs. 45 lakh. So, the total deduction will be Rs. 3.5 lakh. This will translate into a benefit of around Rs. 7 lakh to the middle-class home-buyers over their loan period of 15 years.


    Also, an additional tax deduction of Rs. 1.5 lakh was proposed on interest payments for buying electric vehicles. She said that this amounts to benefit of around Rs. 2.5 lakh over the loan period for the taxpayer who takes loans to purchase an electric vehicle.

    She also mentioned that the GST rate on electric vehicles will be lowered to 5% from 12%.

    Be the first to react