Budget 2023-24 disappoints homebuyers

There has been no relief from higher home loan rates in the budget. There is definitely some relief in the tax slab but it is not enough. Interest is paid to the banks and taxes are paid to the government, but people's problems persist.

An overwhelming disappointment for homebuyers Abhishek Kumar, president, Noida Extension Flat Owners Welfare Association (NEFOWA), said budget 2023-24 was "disappointing" for homebuyers.

"In such a situation, all the homebuyers seem to be in despair once again. There does not appear to be any serious provision in the budget to provide relief to the homebuyers who have lost their earnings of years."

A former corporate banker and homebuyer Chitra Gopalaswamy in Bengaluru, said that under the old tax regime, one could claim an income tax deduction of up to Rs 1.50 lakhs on repayment of housing loans (principal + interest) under Sec 80C but shifting to the new tax regime, this incentive is not available anymore.

This budget Finance Minister Nirmala Sitharaman raised the personal income tax rebate limit, doled out sops on small savings and announced one of the biggest hikes in capital spending in the past decade as she did a tightrope walk in the Budget between staying fiscally prudent and meeting public expectations in the year before general elections.

The personal income tax rebate limit has been increased to Rs 7 lakh from April 1 under the new tax regime, from the previous Rs 5 lakh limit.

Many experts are of the view that the old tax regime is more beneficial to a homebuyer still claiming housing loan benefits and HRA options among other benefits.