T Chitty Babu Chairman And CEO Akshaya Pvt Ltd On the Recent Budget
“We welcome the government’s move to reduce the GST burden on home buyers and we hope that government’s proposal to appoint a Group of Ministers to examine the same is materialized at the earliest. Also the move to reduce the tax burden on the interest on home loans will boost the real estate sector and drive the demand for homes across the country. The exemption of levy of income tax on notional rent on a second self-occupied house will provide a huge relief to the home buyers and will encourage the home buyers to invest in a second home.
The benefit of rollover capital gains under Section 54 of the Income Tax Act increasing it from one residential house to two residential houses and having capital gains up to 2 crore for the home buyers will benefit both developers and home buyers in availing substantial tax exemption on the capital tax gains. Affordable housing is one the most sought segments in the real estate sector and government has given a much needed boost to the real estate developers to enter the segment and aid the growth of the sector in the long-term. The proposed move for making more homes available under affordable housing and extending the benefits under Section 80-IBA of the Income Tax Act which is being extended for one more year is going to prove the much needed relief to the home buyers and the real estate developers. The rise in tax exemption limit up to Rs 5 lakh will create a positive impact on the home buyers sentiments and will help the real estate developers in liquidating the inventory across different segments. The extension of the period of exemption from levy of tax on notional rent, on unsold inventories, from one year to two years, from the end of the year in which the project is completed is a big move from the government and aid the growth of real estate developers as well as the housing finance companies and generate more revenues and encourage more investments in the sector”.
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