Real Estate Budget 2019

After introduction of the new Section 80EEA, the maximum deduction an individual taxpayer can claim will stand at Rs 3.5 lakh.

The finance minister said the interest paid on housing loans is currently allowed as a deduction to the extent of Rs 2 lakh.

Budget 2019 expectation: Credit ratings agency CARE Ratings said, in a report listing its expectations from the Budget 2019-20 dated June 25, it expects additional allocation for the Pradhan Mantri Awas Yojana in the July 5 Budget. It also expects a reduction in the holding period of real estate investment trusts (ReITs) to be made in line with lis...

Experts say growth in the real estate sector seems stagnant and immediate solutions are not expected, however the government is urged to take steps to boost liquidity.

It is recommended the exemption should be increased to at least Rs 3 lakh per annum, according to FICCI.

Industry body Assocham has recommended an increase in interest deduction on home loan to Rs 5 lakh from the current Rs 2 lakh.

In the Budget 2019, the government has announced different benefits for house owners. The 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 ab...

Owners of unsold inventory are currently exempt from paying income tax on notional rent for a period of one year.

In a major push for the affordable housing segment, the Finance Minister also proposed to extend the benefits under Section 80-IBA of the Income Tax Act for one more year till March 2020.

For the real estate sector, experts think that a much-needed impetus is required from the Union Budget 2019.