Seeking relief for home buyers, accounting regulator ICAI has asked the Finance Ministry to double the tax exemption limit on loan repayment to Rs 3 lakh.
"...it is suggested that the deduction in respect of interest on housing loan in case of self occupied property should be increased from Rs 1.5 lakh to Rs 3 lakh", ICAI said in a pre-Budget memorandum to the Finance Minister, Mr Pranab Mukherjee.
The move is necessary to boost the housing sector in view of rising property prices and high interest rates, it said.
ICAI has also pitched for aligning the provisions of the Income Tax Act, so that people above the age of 60 years can avail themselves of all benefits meant for senior citizens.
"To bring more clarity and equality in every section which deals with senior citizens, it is suggested that 60 years age shall apply uniformly in the (Income Tax) Act and accordingly appropriate amendments may be made in the Act," it said.
Although the Finance Act, 2011, had decreased the age of senior citizens from 65 years to 60 years for getting tax benefits of basic threshold limit, it has yet to amend other provisions related to the law.
The regulator has also suggested that the Government should consider raising monetary ceilings of other tax exemption provisions in view of the inflation and declining purchasing power of rupee.
The Government is expected to present the General Budget for 2012—13 anytime after March 12.