Homebuyers alert! Will PM Narendra Modi government waive off home loan interest? What this association wants

In a major development, homebuyers body Forum for People's Collective Efforts (FPCE) has written to the Prime Minister Narendra Modi seeking interest waiver on home loans and more tax sops to deal with the liquidity crisis amid COVID-19 pandemic. Moreover, FPCE expressed disappointment over the 6-9 months extension given to builders to complete the projects. It suggested that builders should get an extension for the actual lockdown period.

For providing relief to homebuyers, the association suggested waiver of interest amount during the moratorium period on EMIs payable by home buyers. It sought amendment in section 24(b) of the Income Tax Act, 1961, removing the 5 years limitation in claiming deductions on interest on home loans.

"Where an assessee is paying both EMI and rent and date for scheduled handover of possession has passed, there should be separate deduction for EMI paid from the total income of such assessees over and above any other deduction being currently provided," the letter said.

In a letter to Prime Minister Narendra Modi dated June 1, the association welcomed various decisions of the government and the RBI to fight the economic difficulties being faced by the country due to the lockdown.

FPCE urged the Prime Minister to direct housing ministry to modify its advisory on force majeure due to COVID-19, to be in line with section 6 of RERA, and that to only for the actual period of lockdown when construction was not permitted, without any further liberty to the authorities to extend.