New Delhi, Feb 2 (UNI) All in all, it is a well thought off and well planned budget and favourable for real estate industry. Shared his thoughts regarding the impact of the announcement on the real estate sector, Raheja Developers Ltd CMD Navin M Raheja, said the Government’s significant endeavour to reduce the tax burden on masses is highly appreciated.
”The bigger gainers are all individuals with net taxable income upto Rs 5 lakh. This means that anyone with net taxable income up to Rs 5 lakh will not be required to pay any taxes. Moreover, under Section 80-IBA, Government has given one year further extension for getting approvals for affordable housing which will give boost to this segment of housing. Both these above benefits to consumer and developer together will accelerate demand for affordable housing in the country,” he said.
Another developer centric initiative announced is the extension of the period of exemption from levy of tax on notional rent on unsold inventories to two years from one year, which is a great relief for the developers. The interim budget 2019 also had significant announcements for home buyers, the budget proposed to exempt levy of income tax on notional rent on the second self-occupied house, which will definitely spur housing demand. Besides this, it is also favourable for those who earn rental income as now the threshold for deduction of tax on rent is proposed to be increased from Rs 1.8 lakh to Rs 2.4 lakh, which means there will be no TDS on house rent of upto Rs 2.4 lakh per annum.
Capital gains of upto Rs 2 crore can be offset by purchasing two properties which is a sure shot move to bring investors to return to real estate. It is anticipated that the group of ministers will examine the recommendation on how GST burden on home buyers can be reduced, he said and hoped that something better to provide relief to everyone would be proposed.
