Its that time of the year again! Yes we are talking about our union budget which was announced day before yesterday . Our FM Mrs Nirmala Sitharaman has announced several sops to boost the sluggish housing sector in our country. These sops will benefit not only First time homebuyers but also second home buyers and also realty firms like ours i.e. RR Housing who focus on affordable housing. Read on to know more details
The FM said in her budget speech: “For realisation of the goal which is housing for all and affordable housing, a tax holiday has already been provided on the profit earned by developers of affordable housing. Also interest paid on housing loan is allowed as a deduction to the extent of Rs 2 lakh in respect of self occupied property. In order to provide further benefit, I propose to allow an additional deduction of Rs 1.5 lakh for interest paid on loans taken upto 31st March 2020 for a purchasing an affordable house now will get an enhanced interest deduction up to Rs 3.5 lakh. This will translate in to benefit of Rs 7 lakh to the middle class home buyers over a loan period of 15 years.”
Former Finance Minister Piyush Goyal in his interim budget 2019 speech had announced exemption from income tax on the notional rent from second house property. In addition to that, one can also invest capital gains of up to Rs 2 crore arising from sale of house in two house property instead of one, as per the interim budget. However, this benefit is available only once in a lifetime.
At present, for a self-occupied house, one can avail a tax break on the principal amount repaid on the home loan as well as the interest paid on it. Under Section 80C of the Income Tax Act you get a deduction for the principal (of the loan) repaid up to Rs 1.5 lakh a year and the interest paid is deductible up to Rs 2 lakh per annum under section 24. These deductions are allowed from the gross total income before calculation of tax, thereby reducing the total tax payable.
To sum this up we at RR Housing are on top of all these changes which affect our customers. We will ensure that you get the best deal on your mortgages and walk you through the paperwork on an individual basis. We work hard so you can rest assured that you money will go a long way! Come take a look at one of our properties!
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