2019 Union Interim Budget and impact on the Real Estate Market

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2019 UNION INTERIM BUDGET AND ITS IMPACT ON REAL
ESTATE INDUSTRY
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• Introduction
• Tax benefits
• Levy Tax on notional rent
• Capital gains
• Threshold for deducting TDS and Tax rebate
• Sources

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Introduction
The Real estate industry has many expectations
from the union interim budget 2019.This industry
has made modifications by itself to the economic
reforms such as demonetization, GST, RERA Act
2016 successfully which lowers the cost of
construction and increases demand in real estate.
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Tax Benefits

• Under section 80 (1) (B) (A), the income tax
  reduction on all affordable housing projects with
  maximum thirty square meters of unit size in
  metro cities and sixty square meters elsewhere
  has been extended for more one year i.e., march
  of 2020.

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Levy Tax on notional rent

• The charges of tax on notational rent on
  completed projects has extended to two years.
• Exception of tax on second self occupied house is
  proposed in the budget by considering the
  requirements of middle class families.

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Capital gains

• Earlier, the capital gain benefits are for one
  residential property.
• Under section 54, the capital gain benefits can
  be availed once in a lifetime on two residential
  properties.

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Threshold for deducting TDS and Tax rebate

• The threshold for deducting TDS on tax on rent is
  1,80,000 and now proposed to 2,40,000.
• The persons who are paying a taxable income of
  5,00,000 will get tax remissions.

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• The real estate industry feels that the measures
  in the budget will help to take up more housing
  projects reasonably as there are 100 more
  projects coming up.
• The steps to enhance the infrastructure such as
  electricity for all by the year 2019 will help
  to get positive impact on the real estate market.

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Sources

• http//blog.deltusrealty.com/2019-union-interim-bu
  dget-and-impact-on-the-real-estate-market/
• https//deltusrealty.com/

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