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The interim budget 2019 had significant announcements for home buyers, the budget proposed to exempt levy of income tax on notional rent on the second self-occupied house.
“Currently income tax on notional rent is payable if one has more than one self-occupied house. There are many middle class families who have to maintain families at two locations due to jobs, childrens’ education, care of parents etc. Therefore, I am proposing no tax on the notional rent on the second self-occupied house,” said Interim Finance Minister Piyush Goyal
The tax on notional rent on unsold inventory will now be levied after two years which earlier was to be paid after a year, said Goyal.
The interim budget also turned out to be favourable for those who earn rental income as now the threshold for deduction of tax on rent is proposed to be increased from ₹ 1.8 lakh to ₹ 2.4 lakh
“The benefit of roll over of capital gain u/s 54 of the Income Tax Act will be increased from investment in one residential house to two residential houses. For a tax payers having capital gains upto ₹ 2 crore this benefit can be availed once in a life time,” said Goyal.
For making more homes available under affordable housing, the benefits u/s 81 B(A) Income Tax Act has been extended for one more year. That is all the housing projects that are approved till March 2020.
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