Would the happy tune continue for home owners this Budget

Exemption was https://www.kabbalah-arizal.nl does canada goose go on sale black friday proposed on the notional rent applicable on the second self occupied house. The canada goose bird uk threshold limit for TDS on rental income was proposed to be enhanced to Rs 2.4 lakh from Rs 1.8 lakh. Also, the capital gains tax exemption from sale of house property was extended from re investment of proceeds in two residential properties instead of a single house property, available earlier.

Keki Mistry, Vice Chairman and CEO HDFC Limited, says, “The tax deduction available on interest payable on housing loan has been kept at Rs 2 lakh for a long time, except a brief period when additional Rs 50,000, was provided for loans taken during a limited timeframe. That enhanced concession is over and hence there is a definite need to increase the limit by a significantly higher amount, given the state of the economy and the need to boost sales.”

Mistry suggests that the interest deduction be increased to Rs 3 3.5 lakh to improve housing demand. “The additional benefit, can be provided on the condition that the house is bought within a limited time frame, say a two year ” he adds.

Another area of itch is the Rs 1.5 lakh cap on Section 80 C exemptions, which includes the home loan principal repayment. “The deduction limit under Section 80C was last increased in 2014 after a hiatus of a decade. The government could consider revising it now. Though it cheap canada goose will eventually be an added burden on the exchequer, it will help bring back buyers and revive the sector,” cheap canada goose says Anuj Puri, chairman of ANAROCK Property Consultants.

But instead of merely increasing the canada goose outlet uk Section 80 C limit of Rs 1.5 lakh, an additional move is being demanded. Vipul Patel, Managing Director Founder, of loan canada goose outlet winnipeg address advisory firm Mortgage World, recommends, “The Section 80 C deduction limit of Rs 1.5 lakh is generally exhausted by tax planning investments. There is canada goose outlet montreal address a need to remove the home loan principal repayment deduction from the basket of Section 80C and introduce a new section or sub section allowing a higher principal repayment. This limit can be further enhanced to Rs 2.5 lakh.”

With regards to home loans per say, there have been calls to ensure that banks and home financers walk the RBI uk canada goose store rate cut path and make transmission effective. “RBI has reduced the canada goose black friday policy rate for three consecutive times. However, the mortgage rate from banks has remained sticky at around 9 per cent. The government should signal its intent canada goose decoys uk to lower the prevailing mortgage interest rates in sync with the reduction of Policy Rate,” says Ramesh Nair, CEO Country Canada Goose Online Head, JLL India.

Measures needed for rentals

Home rentals is another area that needs to be relooked at. While it remains to be seen whether the TDS threshold improvement to Rs 2.4 lakh from Rs 1.8 lakh announced in the interim Budget is maintained, the measures to tax rental income need to be relaxed.

“The income earned as housing rental is fully taxable. While the interest paid against a home loan can be set off against this income, the benefit is capped at Rs 2 lakh. This limit needs to be removed entirely as it existed a couple of years ago, as the demand for purchasing a property for rental income has gone down significantly,” suggests Mistry.

With regards to rolling over of capital gains from sale of canada goose outlet uk fake property as per Section 54, canada goose outlet store montreal the interim Budget proposed to permit re investment of sale proceeds in two residential properties instead of one permitted currently. This was offered as a once in a life time benefit on an amount of up to Rs 2 crore.

However, a slight tweak to this proposal would be helpful. Patel of Mortgage world says, “The capital gains exemption from property sale proceeds are currently available if gains are invested in residential properties only. The finance minister should consider cross investment of sale proceeds from residential properties to commercial properties and vice versa to offset taxes on gains.”

Though the Pradhan Mantri canada goose outlet hong kong Awas Yojana (PMAY) has been applauded, a few does canada goose have black friday sales relaxations have been suggested by financers and developers to make the scheme more effective. canada goose uk sale asos The PMAY is a “Credit Linked Subsidy Scheme,” announced wherein the families earning up to Rs 18 lakh are offered an interest rate subsidy of 3 canada goose black friday discount 6.5 per cent on either purchase, construction or improvement of a house.