Union Budget 2016-17 Gives Many Reasons to Cheer
14 Mar 2016
The Union Budget 2016-17 is one of the most anticipated events of the year . Housing for all seemed to be the main focal point of this year’s budget. It is expected to transform the real estate scenario of India, hugely benefit the home buyers and turn it into a progressive sector. A revival of this sector will also be a catalyst for the growth of several other businesses and not to forget the major boost that the Indian economy would get.
1) The Union Minister Arun Jaitely has given the realty sector and several new home buyers looking to invest in this sector many reasons to cheer. The removal of a significant tax hurdle in the way of REIT or Real Estate Investment Trusts , has given meaningful incentives to first-time home buyers. Affordable housing is no longer a distant dream!
2) 100% deduction on profits to an undertaking in housing project for flats upto 30 sq. metres in four major metro cities and 60 sq. metres in other cities. This will address the housing needs of the needy.
3) The budget also offers an exemption of service tax on construction of affordable homes but only up to 60sq.m. under any scheme of the central or state government. It would also be applicable on those projects that are built under the public-private partnership schemes.
4) Another significant point of the budget is that the deduction for additional interest of Rs 50,000 per annum for loans up to Rs 35 lakh has been sanctioned. if you are a first time home buyer and the cost of the house does not exceed more than Rs 50 Lakh, then you are eligible for it.
5) Besides interest, under Section 80C the portion of one's EMI which goes towards principal repayment is allowed to be claimed. This amount can be claimed within the overall limit of Rs 1,50,000.
6) The Budget 2016-17 also has some good news for those living in rented apartments. It calls for an Increase in the limit of deduction of rent paid under section 80GG from Rs 24000 per annum to Rs 60000.
Budget 2016 provides some relief to real estate sector and the home buyers. The new budget will definitely bring some cheer to the otherwise gloomy real estate sector and will be a great boost for those dreaming to buy their dream homes.