Budget’s influence on housing taxation
By Accommodation Times Bureau.
According to the recent Parliamentary General- Budget for the year 2017-2018, held on February 1st, 2017. The Union Minister of Finance and Corporate Affairs Shri Arun Jeitley presented various growth empowerment topics, one of the main aspects focusing on the affordable housing. Shri Arun Jeitley said how Indians are tax non-compliant society. According to the report of taxation, among 3.7 crore who signed for tax returns only 24 lakh people unveil an income above Rs 10,00000.
The government’s main aim is to eradicate black money and introduce reasonable taxation. The finance minister stated in the General Budget proposal; the scheme for profit linked income tax exemption for promoters of affordable housing will be broad based. Instead of built-up area of 30 and 60 sq. meters, the carpet area of 30 and 60 sq. meters will be counted. Also the 30 sq. meters will apply only in case of municipal limits of four metropolitan cities while for the rest of the country limit of 60 sq. meters will apply. In order to be eligible, the scheme was to be completed in three years after commencement. Now, it will be extended to five years. The tax on notional rental income will be applicable after one year of the end of the year in which completion certificate is received so that builders get some breathing time for liquidating their inventory. Announcing changes in the capital gain taxation provisions in respect of land and building, Shri Arun Jaitley said that the holding period for considering gain from immovable property is being reduced to two years from existing three years now. Also, the base year for indexation is proposed to be shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property. In respect of new capital for State of Andhra Pradesh, persons holding land on 2.6.2014 whose land is being pooled for creation of new capital city under the Government Scheme, will be exempted from capital gain tax.