Union Budget 2012-13: Real estate Proposals and Impacts

Budget Proposal: Additional deduction (Section 80 CCF) for infrastructure bonds of Rs. 20,000 has not been extended beyond assessment year 2012-13 .

Real Impact: Infra bonds will lose their attractiveness.

****##^^

Budget Proposal: Seller of immovable property (plot of land, House) with value exceeding Rs. 50 lakh urban areas (Rs 20 lakh for rural areas) will need to deduct tax at source at 1% of the sale value, and pay it to the government treasury.

Real  Impact: While this will help in tracking/ bringing to tax the transactions in real estate sector generally, there would be an additional compliance burden to be undertaken by the seller.

#$*88^^^

Budget Proposal: Long term capital gains (LGCG) from sale of house property will not be taxable, if invested in equity shares of eligible companies (typically  manufacturing small  medium enterprise- SMEs).

Real  Impact:
An additional avenue is now available to save tax on long term capital gains. This will also channelize funds to the SME sector.

**^^#


Share:

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

Coverton Insurance Broking - a one-stop solution for businesses and individuals seeking expert risk management

Coverton Insurance Broking Launches Comprehensive Insurance Broking Services to Simplify and Enhance Risk Management for Businesses and In...