Budget 2019 for Real Estate
Feb 07, 2019 Real Estate News
On February 1st, the interim Finance Minister, Piyush Goyal, presented the interim budget for the year 2019-20. While opening the budget, the finance minister said that the government is poised to make out country a five trillion dollar economy in the next five years and ten trillion dollar economy in the next eight years thereafter.
Since the real estate industry contributes a majority towards the country’s economy, there are few benefits that have been proposed to revamp the sector.
Let’s discuss them all in detail:
The minister also proposed the exemption of notional tax on the unsold inventory from one year to two years.
This has come as good news for a lot of home owners.
The budget 2019-20 seems promising for the real estate industry. A lot of effort has been continuously made by the government to revive the slowdown of the real estate industry of the country. it is hoped that this year, more buyers will invest in the properties.
Since the real estate industry contributes a majority towards the country’s economy, there are few benefits that have been proposed to revamp the sector.
Let’s discuss them all in detail:
No notional rent
If you own more than one property and they are self occupied, the there used to be notional tax levied on them. This made it difficult for the common man who is maintaining two homes and taking care of his family’s expenses. The finance minister proposed the exemption on the notional tax for the self occupied second property.The minister also proposed the exemption of notional tax on the unsold inventory from one year to two years.
This has come as good news for a lot of home owners.
Deduction of tax on rent
The budget 2019-20 proposed the TDS threshold of tax deduction on rent from Rs 1.8 lacs to Rs 2.4 lacs. This has come as a major relief for the small taxpayers.More benefits for the affordable housing
The government has been trying to promote the affordable housing segment through the various offers and benefits. The recent benefit proposed in the budget 2019-20 is that the benefits under Section 80- IBA of the income tax act, that are available for the buyers, for the housing projects has been extended till 31st march 2020.Capital gains
Till now the owners were able to enjoy the capital gains for the resale property for only one property. That is, the owners were able to enjoy the capital gain benefits if they reinvested the gains from the resold property to another single property. Now with the proposed benefits, the owners will be able to enjoy the capital gains for the resold properties by reinvesting in more than one property.Rebate
The tax payers, who have the taxable annual income of up to Rs 5 lacs, will be able to enjoy the full rebate on their tax and therefore will not be able to pay the taxes for the same.The budget 2019-20 seems promising for the real estate industry. A lot of effort has been continuously made by the government to revive the slowdown of the real estate industry of the country. it is hoped that this year, more buyers will invest in the properties.
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