The government has no plans to increase the income tax ceiling on home loan interest payments, though there was a demand from the urban development ministry in this regard.
"It has been requested that the deduction on account of interest payment available under section 24 of the Income-tax Act should be increased to the extent of full payment paid in housing loan taken, for all categories of assesses, at least in respect of one house," Minister of State for Finance S S Palanimanickam informed Rajya Sabha on Tuesday.
He further said the ceiling of Rs 1.5 lakh (Rs 150,000) is applicable only in case of self-occupied property. "This ceiling of Rs 1.5 lakh in the case of self-occupied is adequate and no upward revision is required to be made," the Upper House was informed.
However, in the case of rented property, the entire interest paid on home loan is already allowed as a deduction. There is no case for any further increase in this regard, he said.