“Owing to the infrastructure development and housing for all initiatives by the Government, real estate sector has seen a big boost. The Interim Budget 2019 announced today had some praise worthy inclusions for the real estate sector. Finance Minister Piyush Goyal threw some light on the transparency that has come due to the introduction of RERA in the sector. He proudly informed that around 1.53 crores houses were built under the Pradhan Mantri Aawas Yojna. One of the major expectation from the budget was reduction in taxes and I am happy that our government also wants to reduce GST burden on homebuyers. It is great that the GST council will form a GOM (Group of Ministers) which basis recommendations will take a decision on how the taxes can be reduced for the homebuyers.
The government also announced a series of benefits including the exemption of notional tax that is applicable to the second house if someone has more than one house. For homeowners who are earning rental income, the threshold limit for TDS has been increased to Rs 2.4 lakh from Rs 1.8 lakh currently, which is a welcome move. Moreover, capital gain benefit under Sec 54EC has been doubled to Rs 2 crore and can be deployed in two houses. The decisions are focused on unsold inventories and pushing demand in the real estate sector. The tax exemption period on notional rent when it comes to unsold inventories has also been extended from one year to two year. In addition to this, the Government announced that until the year 2020, affordable housing projects will be given tax exemptions if registered before 31st March, 2020, which is also a good sign for the sector.”