INSUBCONTINENT EXCLUSIVE:
Real estate players welcomed the tax benefits and exemptions announced in the Interim Budget which are likely to boost the realty demand,
more so in the affordable segment.Presenting the Interim Budget, Finance Minister Piyush Goyal proposed a slew of measures to boost the real
estate sector which includes extending the exemption period for levy of tax on notional rent on unsold inventories to two years.Owners of
unsold inventory are currently exempt from paying income tax on notional rent for a period of one year."The Minister has proposed extending
the period of exemption from levy of tax on notional rent, on unsold inventories, from one year to two years
This will be applicable from the end of the year in which the project is completed, and this will ensure that the slowdown in creation of
fresh stock as a result of the previous situation will be positively impacted," said Niranjan Hiranandani, President of the National Real
Estate Development Council (NAREDCO).Anoop Kumar Mittal, CMD, NBCC, said: "The government's endeavour to significantly reduce the tax
burden on home buyers is highly commendable."On the proposal to extend the benefits under Section 80-IBA of the Income Tax Act for one more
year, Hiranandani said the decision would be a boost for the affordable housing segment
All the housing projects registered under the Real Estate Regulatory Act by March 31 next year would come under its ambit."The move would
bring a much-needed breather for some projects which have struggled to complete for various reasons," said R.K
Arora, Chairman, Supertech.Also, the benefit of rollover of capital gains under Section 54 of the Income Tax Act will be increased from
Agarwala, Group CEO, Housing.com, the increase in benefit of rollover of capital tax gains to two residential houses, for a taxpayer having
capital gains up to Rs 2 crore will promote buying of second house by buyers.Further, the proposal for exempting Tax Deduction at Source
(TDS) on rented properties up to Rs 2,40,000 per annum is also a favourable move for the common man, according to Ashok Mohanani, Chairman,
Ekta World.Market participants were also emphatic about the proposed tax exemption for individuals with annual incomes of up to Rs 5 lakh
The current tax exemption limit is Rs 2.5 lakh."The budget has taken a good step in increasing disposable income of middle class by making
changes like increasing the basic exemption limit to Rs 5 lakh, increase in standard deduction and increase in deduction for interest
reactions, tax and policy changes here
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