Weighing on the Budget 2017 for the Salaried Employees
May 24, 2017 Home Trading Steps
Last year has been the year of introducing regulatory reforms in the real estate sector. This year’s budget has high hopes to make a difference and to keep our faith it did. The budget 2017 has more towards ‘honour the honest’ and not pinch common man’s pocket. There are some revisions in this year tax slabs.
Banks have slashed their lending rates owing to the crores of money deposited in their vaults due to demonetization. However, to make it work, the tax slab should also be in the favour of the common man. The main goal is to make sure all the tax payers come under the light and all the tax defaulters are caught.
Those earning between Rs 2.5 lakhs and Rs 5 lakhs are now only to pay 5 percent as the tax, which they previously paid 10 percent.
What else could have been in the interest of a common man?
The Federation of Indian Chambers of Commerce and Industry recently put forward the demand, ‘the deduction available under section 24 of the Act is to the maximum limit of Rs 2 lakhs for the interest on loan was taken for acquisition or construction of the self occupied house or property. Given the rise in demand and increase in the prices of property the maximum limit should at least have been 3 lakhs’.
The buyers can only enjoy the tax benefits after the possession of the property though they can claim certain deductions after the possessions. The tax benefit should be available after the sale deed is done.
Budget 2016 vs budget 2017
To make ‘housing for all’ dream a reality, the prices of the properties should go down drastically and made more attractive so that more genuine buyers will show interest in buying the property. In last budget session, a relief of tax exemption of Rs 50,000 was given to the buyers on purchasing the property of up to Rs 50 lakhs. However, the number of people benefited from this is marginal since the cost of property in Tier I cities range from Rs 50 lakhs to Rs 2.5 crores. Anything below Rs 50 lakhs means that the buyer is compromising on the amenities, location, or the property itself. Hence, if the prices cannot be brought down, it is only fair to raise the bar of tax exemptions.
Even the start-ups are looking for the tax benefits. A large number of people expects this budget to be about income disclosing schemes too.
There has been a focus on digitisation but no mention of RERA, GST and Benami transaction. To sum up, there isn’t any huge shocker in the budget 2017.
Banks have slashed their lending rates owing to the crores of money deposited in their vaults due to demonetization. However, to make it work, the tax slab should also be in the favour of the common man. The main goal is to make sure all the tax payers come under the light and all the tax defaulters are caught.
Those earning between Rs 2.5 lakhs and Rs 5 lakhs are now only to pay 5 percent as the tax, which they previously paid 10 percent.
What else could have been in the interest of a common man?
The Federation of Indian Chambers of Commerce and Industry recently put forward the demand, ‘the deduction available under section 24 of the Act is to the maximum limit of Rs 2 lakhs for the interest on loan was taken for acquisition or construction of the self occupied house or property. Given the rise in demand and increase in the prices of property the maximum limit should at least have been 3 lakhs’.
The buyers can only enjoy the tax benefits after the possession of the property though they can claim certain deductions after the possessions. The tax benefit should be available after the sale deed is done.
Budget 2016 vs budget 2017
To make ‘housing for all’ dream a reality, the prices of the properties should go down drastically and made more attractive so that more genuine buyers will show interest in buying the property. In last budget session, a relief of tax exemption of Rs 50,000 was given to the buyers on purchasing the property of up to Rs 50 lakhs. However, the number of people benefited from this is marginal since the cost of property in Tier I cities range from Rs 50 lakhs to Rs 2.5 crores. Anything below Rs 50 lakhs means that the buyer is compromising on the amenities, location, or the property itself. Hence, if the prices cannot be brought down, it is only fair to raise the bar of tax exemptions.
Even the start-ups are looking for the tax benefits. A large number of people expects this budget to be about income disclosing schemes too.
There has been a focus on digitisation but no mention of RERA, GST and Benami transaction. To sum up, there isn’t any huge shocker in the budget 2017.
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