INSUBCONTINENT EXCLUSIVE:
Budget 2019: The proposed hike in TDS exemption limit on rent is seen benefitting the home ownerBudget 2019 proposals provide for a slew of
benefits for property owners
In his Budget speech, Union Minister Piyush Goyal proposed to exempt levy of income tax on notional rent in case of a second self-occupied
Among measures welcomed by tax experts was also the proposal to lift the threshold of rent payment without TDS - or tax deducted at source -
by one-thirds to Rs 2,40,000
The government has said that the move is aimed at providing relief to small tax payers.TDS exemption on rentThe government proposed to hike
the TDS exemption limit applicable to payment of rent from Rs 1,80,000 to Rs 2,40,000 per year
As per existing tax rules, the tenant other than entities including salaried individuals is required to deduct TDS on payment of rent above
Once the new rules take effect, such TDS will become applicable only if the annual rent exceeds Rs 2,40,000.( Tax gift for "great Indian
middle class" as government preps for polls)With an aim to boost the real estate sector, it proposed to extend the period of exemption from
tax on notional rent on unsold inventories from one year to two years
This period will be applicable from the end of the year in which the project is completed.Housing for AllThe government proposed to extend
the benefits under Section 80(i)BA of the Income Tax Act by one year
That means all housing projects registered under the Real Estate Regulatory Act by March 31, 2020 would come under its ambit.Under the
government's affordable housing scheme, projects with units up to a carpet area of 30 square metres in four metros, under certain
conditions, benefit from a 100 per cent profit deduction.Tax on notional rent exempt on second self-occupied houseThe government has
extended the benefit of rollover of capital gains from investment in one residential house to two residential houses under certain
This benefit will apply to taxpayers having capital gains up to Rs 2 crore and can be availed once in a lifetime, it noted."Considering the
difficulty of the middle class having to maintain families at two locations on account of their job, children's education, care of parents
etc., I am proposing to exempt levy of income tax on notional rent on a second self-occupied house," Mr Goyal said in his Budget speech.Find
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