As per media reports on expected changes in Income tax regulations in the ensuing budget 2012, the present limit of Rs. 1.5 lakh for housing loan interest may be raised to Rs. 3 lakhs.
The Economic Times reports as follows: -
In order to arrest the declining growth rate, the industry associations have demanded raising the tax limit ceiling for the housing loan. According to Ficci Secretary General Rajiv Kumar the exemption should be harmonized with the rising interest rates and increased to at least Rs 2.5 lakh. Echoing views, Assocham and PHD chamber said that exemption limit needs to be raised both for interest and principal. As per the Direct Taxes Code, which would replace the decades old Income Tax Act, there is income tax exemption for up to Rs 1.5 lakh paid as interest on housing loans in a year.
Source:The Economic Times