Union Budget 2025 | Increase tax deduction limit for home loan interest, says IIFL Home Finance

'Increasing the tax deduction limit for housing loan interest under Section 24(b) from Rs 2 lakh to Rs 3–5 lakh would offer much-needed relief to middle-income homebuyers and encourage more investment in residential real estate,' IIFL said.

With the Union Budget 2025 mere days away, IIFL Home Finance expects the government to address key issues in the affordable housing and home loan sectors.

"The upcoming Union Budget 2025 provides a key opportunity to address pressing issues in the home loan and affordable housing sectors. Increasing the tax deduction limit for housing loan interest under Section 24(b) from Rs 2 lakh to Rs 3–5 lakh would offer much-needed relief to middle-income homebuyers and encourage more investment in residential real estate," Abhishikta Munjal, Chief Risk Officer, IIFL Home Finance said in a statement.

"Additionally, boosting incentives under the Pradhan Mantri Awas Yojana 2.0 (PMAY) and reviving the Credit Linked Subsidy Scheme (CLSS) would further stimulate demand in the affordable housing segment. Simplifying access to financing for NBFCs that serve underserved communities and lowering GST on essential construction materials like cement would help reduce costs and improve affordability for both buyers and developers. At IIFL Home Finance, we remain dedicated to supporting the government’s vision of ‘Housing for All’ by offering innovative financing solutions for affordable and sustainable housing," the company added.