Raise IT exemption cap for home loans: PHDCCI chief

The PHD Chamber of Commerce & Industry (PHDCCI) on Tuesday asked the Government to push the housing and construction sector by increasing the deduction of up to Rs 5 lakh from the current level of Rs 2 lakh for interest paid on a home loan on a self-occupied house while calculating income tax.

“This will reduce EMI and help increase in disposable incomes of the people and help increase investment in the real estate sector,” said the newly-elected PHDCCI President Mahesh Gupta while addressing a press conference.

Further, he said, the loss in income tax to the exchequer would exceed by increased earnings in excise duties and service tax to be collected from boost to the demand in real estate sector.

Gupta, who is also the Chairman of Kent RO systems, said stimulus to real estate sector would provide a significant fillip to the economy and enhance the country’s GDP by another two percentage points. He also emphasised that the Government expenditure in infrastructure needs to be increased to boost industrial demand.

Releasing the PHDCCI’s Vision Document, Gupta lauded the Government’s “dynamic economic thrust” that has led to “an economic breakthrough during the past 18 months.”