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Now is the ideal time to buy a house/flat
Posted on: 18/Feb/2019 5:20:13 PM
There are indeed some good beneficial features for those who intend to buy their own house/flat in the year’s budget.
Indeed, this is the ideal time to buy a house.
The 1st concession – the limit for the annual income for Income Tax has been increased to Rs. 5 Lakhs. This is again a redeeming feature, especially for the middle-class society and the middle-income earning group.
There was a concession for the houses/flats not sold after the receipt of construction for a period of 1 year. However, in case the house/flat has not been sold for 1 year will be deemed as being rented and Income Tax will be calculated accordingly. Now, this has been removed.
In the latest budget, there is no need to pay income tax if the house/flat remains unsold for up to 2 years. This will be immensely beneficial to the builders. This feature would be beneficial for the buyer as well.
Until now, for those who own 2 houses, it was deemed that the 2nd house is rented. Even if the tax payer’s parents lived in that 2nd hose/flat, it was liable for income tax. Now, in this year’s budget, this has been relaxed.
Those who are using their 2nd house for personal use, need not pay any income tax.
Further, if there is a housing loan on the 2nd house, some income tax exemption can also be availed.
The second concessional feature is the increase in the TDS (Tax deducted at Source for Income Tax calculations) has been increased in this interim budget from Rs. 1,8 Lakhs to Rs. 2.4 Lakhs. So, the economic section of the society which depend on house rents can benefit from this.
