To re-alive real estate sector, Central Government provided rest in the interim budget. To give rest to real estate sector, new home buyers will get tax discount on the interim budget. This way people will be motivated to buy new house which would eventually benefit real-estate sector, to develop affordable housing. Tax discounts are offered even in unsold eventary for two years, earlier the tax discount was for one year only.
With the rest in income tax, real estate can enjoy benefit
With the relief of income tax upto 5 lakh, real estate sector can boom. According to Suneel Rohokaale, M.D. & C.E.O. A.S.K. Group, income upto 5 lakh and for specified investment, income upto 6.5 lakh being tax free, public would have more money. If both husband and wife earns, then almost 10-12 lakh earnings would be tax free. So in the mid housing segment, the number of first time home buyers are likely to increase.
To enjoy tax relief, high income group would prefer buying house
According to J.C. Sharma, M.D. & Vice Chairman, Shobha Limited, people with a little more income can invest in housing to enjoy being tax free. Like Sharma Ji said, now middle class would have more income and they will invest it in buying home since here they can enjoy better returns.
Tax saving would increase house purchasing capacity
Ashish Puravkara, M.D. Puravkara Limited, believes with more savings people tend to complete their house purchasing need. It affects favourably to the affordable housing segment.
Rent TDS threshold increase would also give relief
TDS threshold on rent is also increased in the interim budget and now it is 2.4 lakh which was earlier 1.8 Lakh. According to Ramesh Nayer, C.E.O. & country head , JLL India, making second house’s notional rent tax free, and no TDS upto 2.4 lakh rental income would boost housing sector.