The Union budget 2016-17 has announced
pragmatic measures to boost affordable housing and removed the last tax hurdle
to Real Estate Investment Trusts (REIT).
* Exemption is being provided from service tax on
construction of affordable houses up to 60 square metres under any scheme of
the Central or State Government including PPP Schemes.
* The limit on the deduction of rent paid under
section 80GG has been increased from Rs. 24,000 per annum to Rs. 60,000. The
provisions with respect to unrealised rent and arrears of rent have been
simplified.
* THE BUDGET PRESENTED THIS YEAR ANNOUNCED
BENEFITS FOR THE FIRST-TIME BUYERS. There will be an additional deduction of up
to Rs. 50,000 on the interest part of housing loans. It is applicable to those
who are investing in property costing up to Rs. 50 lakhs and loan amout maximum
is Rs. 35 lakh.
It is
immensely beneficial for the first time buyers as they would save a part of
taxation and would also be offered lower interest rates. It will obviously
encourage them to get a house for themselves.That also means that it will
increase a market for affordable houses, which is mushrooming in and around the
city.
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