There is a cheer in the whole real estate sector after Piyush Goyal today presented the interim budget for the year 2019-20. With favourable budgetary announcements, the real estate sector is all set to witness a steep growth in the coming few years. The sector which was waiting for the budget with bated breath has welcomed the government’s move with a big relief and joy.
Take a look at some of the major announcement which Piyush Goyal has made in his budget speech:
- In order to boost the purchasing power of the home buyers, the government has announced tax exemptions to the individuals from 3 lakh to 5 Lakh. Now, salaried individuals with 5 lakh annual income will get a full tax rebate which means more savings for the dream home.
- The real estate sector which has been facing a lot of problem in the unsold inventory segment has welcomed the announcement of Income-tax exemption on Notional Rent from unsold houses by extending it to 2 years from earlier 1 year. The move will help the builders to save on their tax as well as not to compromise on their real estate deals for the unsold inventories.
- The government has also announced benefits under Section 80-IBA of the Income Tax Act which is extended for one year on the residential projects approved till 31st March 2020. This will give impetus the ambitious affordable housing scheme.
- If you are having two homes in two different cities, then from now onwards you don’t have to pay tax on the second self-occupied home. The govt. has proposed to exempt income tax on notional rent of the second home. “I propose to exempt the notional rent applicable on the second self-occupied house,” said Finance Minister Piyush Goyal.
- TDS on rental income has also been increased from 1.8 lakh to Rs 2.4 lakh. The move is welcomed by small taxpayers who earn via rentals.
- Under section 54 on the income tax act, the govt. has proposed to increase the benefits of rollover of capital gains from investment in one residential property to a second residential house. The above benefit can be availed by those taxpayers with capital gains up to 2 crores for once in the complete lifetime.