The answer is in positive. With the recent budget recently introduced, the Indian Real Estate sector has got several benefits. The various reforms that have been introduced by interim finance minister Piyush Goyal, clearly has potential to mark a remarkable change in the industry. Some of them include exempting tax limit for home buyers who possess more than one property, TDS on house rent and many more. It can also affect the homebuyers from every aspect.
Buyers gain more!
The people with an annual income of 6 lakhs or more will actually be benefitted from the income tax exemption act. A total savings of 28,000 INR is guaranteed for them and for people with two properties, the amount would be around 56,000 INR. This can boost the housing sector. Loans for affordable housing go for an amount of 10 lakhs and the EMI starts at 10,000 INR.
Extending the time period of exemption
The problems of unsold inventory as well as notional rent would be solved with this. According to Budget 2019, the time period has been extended up to 2 years which is a benefit for the realty payers.
Benefits from capital gains
The recent budget of 2019 has certainly increased the amount gained from rollover capitals. Now one can invest in two residential properties at a time. It is related to the section 54 of Indian income tax act and will get applied to tax payers with capital gains up to 2 crores. This will also help to create a high demand in the real estate industry.
The importance on the growth of proper infrastructure
19,000 crores INR would be invested in the Sadak Yojna scheme- this has been announced by the government with the introduction of the new act. The main aim is to contribute to the development of physical and social infrastructures. One can also talk about housing under the Pradhan Mantry Awas Yojna scheme in this case.
TDS increased on rental income
The tax on rental income is supposedly increasing with the introduction of the new act from 1.8 lakhs to 2.4 lakhs. This is sure to attract and encourage more investors to look for a second home for the inflow of more rental income.
Needless to say, with the new moves of the Budget 2019, real estate sector of India is supposed to experience a significance shift in its course towards growth and development very soon.
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