First home buyers got a shot in the arm after Finance Minister P Chidambaram announced additional deduction on payment of interest for homes below Rs 25 lakh.
First housing loan of up to Rs 25 lakh will be eligible for extra Rs 1 lakh tax deduction, Mr Chidambaram said. Currently, the deduction limit for payment of interest for self-occupied property is Rs 1.5 lakh.
The deduction will be applicable for loans taken in fiscal 2013-14.
All realty stocks reacted positively to the announcement. Anant Raj Industries, Sobha Developers traded with 5 per cent gains, while DLF jumped nearly 3 per cent.