What to expect from Budget 2023?

Are you up-to-date with the latest news and predictions regarding Budget 2023?

The 2023 Budget is actually creating a lot of buzz! It will be presents on February 1, 2023.

It’s been said that we might see some changes in home loans. But besides that, the President has expressed her vision of making India a country without poverty and a thriving middle class. She also mentioned that the current government is fearless and decisive.

On February 1st, we may see a revision in the basic exemption limit which has been pending for over 10 years. It might be increased from 2.5 lakhs to 5 lakhs, meaning more disposable income for the salaried and home buyers. That’s something to look forward to!

There’s been some talk about a possible increase in the 80C deduction limit. Right now, it stands at 1.5 lakhs. This limit covers various investment opportunities, including the National Pension System, Public Provident Fund, tuition fees, Unit Linked Insurance Plans, and the Sukanya Samriddhi account. It looks like there might be a split into separate limits for the major segments, giving us even more options to consider for our investments.

Here are some updates on the budget 2023 expectations.

• Firstly, it seems that the deduction limit for health premiums could increase from the current limit of 25,000 to 50,000.
• The standard deduction limit could also go up from its current limit of 50,000.
• There might also be a shorter holding period for non-equity funds and an increase in the equity Long-Term Capital Gains limit to 2 lakhs.
• Another exciting change could be individual deductions for home-buyers repaying their loans. This is currently clubbed with Section 80C with a maximum limit of 1.5 lakhs.
• The deduction on interest for housing loans could also increase from 2 lakhs to 4 lakhs. The current deduction for the principal portion, which is 1.5 lakhs and covers multiple investments (Provident Fund, Term Deposits, etc.), may also see some revisions.
• Lastly, there could be a separate deduction introduced for housing loan repayment, ranging from 1.5 to 2 lakhs.

Budget 2023 Expectations for the Home Loan and Real Estate Industry

Atul Monga, the Founder and CEO of BASIC Home Loan, recognizes that the home loan and real estate sector plays a critical role in the Indian economy, but it’s facing some challenges due to rising interest rates. To boost growth in the sector, he believes that lenders need to come up with loan options that are priced fairly and have flexible repayment terms. This will not only keep the sector competitive but also provide stability for customers when it comes to budgeting.

On the other hand, the current tax cap for housing loans has been ₹2 lakh for quite some time now and has not changed despite inflation. Hence, Atul believes that the government should consider increasing the deduction limit for interest payments on home loans from the current ₹2 lakh per year to ₹5 lakh, which would encourage more demand for housing, especially in the affordable housing segment

That’s all the news we have you for now, let’s see what the budget 2023 brings!