The highlighting factor of the present government's long-term developmental plans in India has been housing for all by 2022. This year's union budget rightly addresses this purpose. As per the announcement of the budget with a focus on real estate, the need is primarily focused on the common man by extending tax incentives for housing.

Earlier, the amendment of tax laws was aimed to restrict the loss from house property that can be set off with other income to ₹ 2 Lac. With the expansion of eligible income tax deductions, the government could consider restoring the old provisions and remove the cap of ₹ 2 Lac relating to house property loss that can be set off with other income.

In India, maintaining a balance between job, children's education, taking care of the parents are some of the everyday realities of the middle class. Hence, they are often caught with difficulty to maintain two families at two locations. Middle class with two houses can now take relief on the payment of notional rent. Earlier, the income tax on notional rent was payable if one had more than one self-occupied house. However, the budget speech made it clear to exempt the imposition of income tax on notional rent on a second self-occupied house. On the other hand, the budget also promises Capital Gains benefit on 2 housing investments. The government has proposed rollover of capital gains up to ₹ 2 crore towards buying two houses compared to only one under the present one unit only. The real estate sale is expected to go up as many individuals will be tempted to purchase more than one house. Under Section 54 of the Income Tax Act, one can avail the rollover benefit once in a lifetime.

Another highlight of the budget is addressed to benefit the small taxpayers. The tax deducted at source or TDS threshold for deduction of tax on rent has been proposed to provide relief to the small taxpayers by increasing the amount from ₹ 1,80,000 to ₹ 2,40,000. Experts have stated such move to drive up the sales of affordable housing. It will also provide administrative relief to small taxpayers who are landlords.

The relief gets extended to the housing developers as well. The period for taxing unsold inventory has been extended up to 2 years. This move by the government has been highly welcomed as it will boost the housing sector. The developers still have a huge number of ready units which are unsold across many cities of the country, and this announcement has brought much-needed relief to them.

Author's Bio: 

Hi, I am Alisha. I am a professional content writer in Clicbrics with having seven years of experience in this field. I enjoy sharing thoughts and giving advice through my blogs about buying property in India real estate market.
Hi, I am Alisha. I am a professional content writer in Clicbrics with having seven years of experience in this field. I enjoy sharing thoughts and giving advice through my blogs about buying property in India real estate market.
Clicbrics is India’s first online real estate advisor dedicated to empowering buyers with data, inspiration and knowledge around the real estate sector and connecting them with the best residential and commercial projects in
India.