Affordable Housing to Get More Affordable
Feb 07, 2019 Real Estate News
The union budget 2019-20 has brought some good news to the real estate sector of the country to boost the demand in the sector that has been on a low for quite a while now. The experts believe that the 2019-20 budget will help in increasing the sales of the affordable housing segment.
This year’s budget comes as good news for those who are hoping to invest their capital gains in more than one property. Under Section 54 of Income tax act, the benefit of the rollover capitals will be increased from investment in one residential property to two residential properties for the tax payers whose capital gains are up to Rs 2 crore. The benefit can be availed by the individual only once a lifetime.
The government has been making tremendous efforts to revive the real estate sector of the country. The recent laws and this year’s budget hope to interest the buyers more into buying the property.
Buyers to enjoy more benefit
For a buyer with the annual income of over six lacs, they will be able to save at least Rs 28,000 annually. If there are two earning members, then the annual saving can be up to Rs 56,000 annually. This is a piece of great news for those who are planning to invest in the affordable housing segment as most houses in the segment requires an investment of Rs 10 lacs and the EMI for the same is around Rs 10,000 which is an excellent way of saving money.Benefits for affordable homes extended
The benefit under Section 80C- IBA of Income Tax Act is being extended for a year, till 31st March 2020. This will gives more time to invest in the affordable housing segment.Tax exemption on Notional rent
The buyers and investors often hesitate from investing in the second homes because of the tax they have to pay as notional rent, regardless whether the second property has been put on rent or not. If the property is not on rent, then the notional rent goes from the pocket of the buyer which in terms only leads to the loss. But this year’s budget gives relief to the buyers who own second houses. This will motivate more investors and buyers to invest in real estate.Capital gain benefit
Till now the owner could enjoy the capital gains benefit if they sold the property and invested the money from the resale on another property. They weren’t able to enjoy the same benefit if they wanted to split the resale money and invest in two or more properties.This year’s budget comes as good news for those who are hoping to invest their capital gains in more than one property. Under Section 54 of Income tax act, the benefit of the rollover capitals will be increased from investment in one residential property to two residential properties for the tax payers whose capital gains are up to Rs 2 crore. The benefit can be availed by the individual only once a lifetime.
The government has been making tremendous efforts to revive the real estate sector of the country. The recent laws and this year’s budget hope to interest the buyers more into buying the property.
