Budget 2013: Home loan borrowers allowed additional deduction of Rs 1 lakh

In a move that will bring cheer to many prospective home-owners, Finance Minister P Chidambaram announced incentives for home loan borrowers in his budget 2013 speech.

Chidamabram said that any person taking a first time home loan up to Rs 25 lakh during the financial year 2013-14 will be allowed an additional tax deduction of interest of up to Rs 1 lakh.

Finance Minister said that the move will help promote affordable housing and also provide employment to many in the construction sector.

Chidambaram started his speech by reiterating the resolve of his government to cut expenditure and bring the Current Account Deficit back on track. He also pointed out how India is still the third fastest growing economy amongst the bigger countries.

As the speech progressed, the FM went on to reiterate UPA's pet goal of inclusive development. he subsequently announced many schemes & allocations for SC, ST, women, differently-abled and other schemes such as Sarv Shiksha Abhiyan & provided additional allocation for the food security plan.

Presenting his eighth Union Budget, Finance Minister P Chidambaram in his budget 2013 speech gave emphasis to the need for 'inclusive growth'. The budget will focus on higher growth and financial inclusion, he said.

"Many people will be left behind if we do not pay attention to growth," he said. Chidambaram said that any growth should also be sustainable.

Chidambaram acknowledged that the room for a fiscal stimulus is constrained and that deficit levels are high. More details here