Interim Budget 2019 was delivered by Piyush Goyal and brought much relief to the real estate sector and home buyers. While the proposed budget is yet to be implemented, familiarise yourself with what’s in store for you as a home buyer/homeowner.
Increase in income tax rebate
The Budget 2019 offers a tax rebate of up to Rs.12,500 under Section 87A of the Income Tax Act. You can avail this rebate provided your total tax liability for the financial year is within Rs.12,500 and your taxable income for the year is within the Rs.5-lakh threshold (after deducting tax benefits courtesy of Section 80).
Once implemented, this exemption will help home buyers like you have more liquidity, which in turn will allow you to expand your budget for a home purchase. This may also lead to a greater demand for real estate in India.
Social and physical infrastructural growth
The government has also proposed to allocate Rs.19,000 crore towards Sadak Yojana. Once put into action, this substantial stream of funds will be used to makeover the infrastructure in India and encourage development in untouched areas, making them fit for habitation.
This, in turn, will attract builders and increase the supply of affordable properties in India. Along with the PMAY initiative, this will boost the number of people looking to buy homes in India.
Additional Read: Things You Should Avoid While Buying Property in India
Extension of Section 80-IBA benefits
The Budget 2019 has also proposed to extend the benefits of Section 80-IBA for property developers up to 2020. This aims to accelerate the present government’s dream of achieving housing for all. Courtesy of this move, developers will be further encouraged to build more affordable homes, which in turn will give more home buyers access to affordable projects.
Reinvestment of capital gains in two houses
The Budget 2019 has also listed another change in favour of home buyers. It has suggested a revision in the reinvestment of capital gains. As per the new proposal, you can reinvest your capital gains of up to Rs.2 crore in up to two residential properties. You can use this benefit once in your lifetime and lower your tax liability greatly.
Increase in TDS exemption on rental income
Another proposal that has come as a breath of fresh air is the increase in the TDS limit on rental income. While the limit was earlier set at Rs.1.8 lakh, it is now to be increased to Rs.2.4 lakh. This will attract increased investment from home buyers planning to buy property solely for renting out.
Changes to notional rent tax on a second home
As per Interim Budget 2019, you no longer have to pay notional rent tax on a secondary self-occupied house. This makes it more affordable for middle-class Indians to own a second home. However, this is most beneficial to you if you haven’t got an outstanding loan for the second home.
So, it’s easy to see that the changes proposed by Interim Budget 2019 make now an ideal time to invest in real estate in India. If you need support to get started, simply approach Bajaj Finserv Homes and Loans to begin your property search.
With an online real estate portal that gives you details on properties, builders, amenities, and neighbourhoods and allows you to compare various options, choosing an ideal property isn’t a challenge.
Here, you can make your purchase affordable and convenient by availing home loans of up to Rs.3.5 crore as well. You can also enjoy perks such as in-person assistance for site visits and guidance with documents.
With facilities such as the property dossier, you can learn the financial and legal aspects of buying a home too. To unlock these benefits and many more, check your pre-approved offers to view customised deals and apply right away!