Real Estate Welcomes Budget 2019 with Open Arms
Feb 07, 2019 Real Estate News
The interim budget 2019-20, presented on February 1st, announced a range of benefits for both the buyers and developers. The recent announcements have been well received by the buyers, and the developers and the hopes that the real estate industry will get revived and the slowdown will pick up the much needed speed.
The recent measures proposed by the government in this year’s budget are:
For the notional rent on the unsold inventory, the exemption on the levy tax has been increased from one year to two years from the end of the year in which the project has been completed.
The potential buyers and the developers across the country are welcoming the proposed ideas with open arms. The much needed push that was required for the buyers seems to have been provided in the budget.
The recent measures proposed by the government in this year’s budget are:
For the notional rent on the unsold inventory, the exemption on the levy tax has been increased from one year to two years from the end of the year in which the project has been completed.
- The profits and gains that have been derived from the affordable housing segment project that has been approved after 1st June 2016 are hundred percent deductible under the section 80-IBA on the income tax act.
- For homebuyers, the GST has been a pretty expensive affair. The government has asked the GST council to reduce the GST rate for the homebuyers.
- The exemption on the notional rent is something that has come as a major relief for the individuals who own more than one property. Notional rent was applied on the second house, regardless of whether it is self occupied or not. A home owner was supposed to pay the tax on the notional rent on the second property. In the budget 2019-20, the government has proposed the exemption of the same.
- Earlier, the home owner was provided capital gains benefit from the resale of his property given they reinvest the money on one property. That came as a deadlock for the investors who wished to invest the money in two properties. The budget this year proposes that the home owners will be able to enjoy the benefit of the capital gains under section 5 of the income tax act, for more than one property. Given the capital gains is up to Rs 2 crore. The individual will be able to enjoy the same only once in a lifetime.
The potential buyers and the developers across the country are welcoming the proposed ideas with open arms. The much needed push that was required for the buyers seems to have been provided in the budget.
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