What is in For Real Estate Sector in Budget 2019
Both homebuyers and real estate world were hoping the best out of the coming budget. They were hoping with their fingers crossed to get the best and would eventually help in the turnaround of their fortunes.
Earlier buyers were paying high EMIs on things they bought, be it a fully furnished home or a small wakened plot. On the other hand the developers were struggling with their unsold inventory and they had to pay high taxes for everything they had. Thebuilders were thinking that the budget will bring happiness in their life. But did that really happen?
So, Let Us See a Few Points of the Budget Highlights:
1. The government introduced the stamp duty within the purview of GST by providing input credits of the construction against the output of renting.
2. The incentives rental housing will now completely meet all the housing commitments by 2022. This will subsequently increase limit of interest deduction paid on home loanfrom 2 lakh to 3 lakh. Which in return set the buyers to think that the undue delays of houses that are bought on EMIs would be eased.
3. Some of the buyers said that government should set up a stressed asset fund to ensure that unfinished houses are completed.Later to which there would be a tax holiday that would be provided to all the home buyers who have been waiting for their homes for years.
4. Indian real estate sector has been showing signs of recovery after the prolonged slowdown. The Prime Minister Narendra Modi led the union government in its interim Budget 2019 for real estate and has announced several benefits that they actually measured from the sector.
5. The government has also offering a tax rebate to the common people whohavetheir incomes less or equal to 5 lakhs.
6. The government has also exempted tax on unsold housing units for 2 years. The finance minister Piyush Goyal has given tax breaks, enhanced benefits while not increasing taxes and with this, he also showeda roadmap that will keep fiscal deficit in control.
7. According to the budget, the homes will now be available at even more affordable prices under section 80IBA of the income tax act.This will surely give benefits to affordable home buyers. And according to this act things are being extended for more than one year but will be valid for only the projects until 31st March 2020.
8. The budget has also focused on some on- going projects. Currently,the income tax is being payable if someone has more than one self-occupied house.
9. According to the interim budget, this time the governmenthas taken the middlemen into consideration and has put him as apriority before making of the budget. If there is a person who has to shift to a new place and buy another property, the government will not ask for any income tax on that person is second property.
10. People are actually happy after hearing the proposals that have been laid down by the government this time. And especially the extended time for completing affordable housing projects to earn a tax holiday under section 80 IBA.
11. The budget has now brought peace to the projects holders. And the common- man has now started believing in the government and has also started respecting their proposal. They feelthis is a positive step for the future is growth.
12. But at some point, they were actually expecting good from the interim budget 2019. They knew at least it will help the people and at some point it might change the person is life completely. Butthis is quite impractical still it will give a good relaxation therapy to the people.
13. The budget is surely going to enhance the life of people and consolidating the real estate sector. It will further provide people with comprehensive social security and will somehow, strengthen the government is vision to make India much known and respected country.
14. The budget will provide an ample amount of opportunities for the homebuyers to invest in. Enhancing the exemption limit for taxpayers will increase the buying capacity of the potential homebuyers, therefore, providing a boost to achieve homes for all.
15. And now the builders do not have to pay notional rent on unsold flats for flats for two years after the year where construction is finished. It is suggested that the deduction on account of interest payment will be available under section 24.
16. Under the section 54 of income tax act, itwill eventually increase thereal estate investment in one residential house for a taxpayer having capital gains up to Rs.2 crore and the Tax deducted at source threshold for people on rent will come under the income level of 1lakh 85thousand to 2lakh 40thousand will be exempted.
17. The budget is a big booster for industry of real estate in India, the revival of which was much needed this time.
18. It also helps the country in pushing the growth level by increasing and bettering the Indian economy to the next level. The most important and concerned thing right now is the problem created by GST implication. Though at some point or some places GST might be considered a good thought or a good move by the government; but there are people who are on the negative sides as well.
