You are five months into the New Year and two months into the new financial year. The budget announcement got made in February 2019, and it is the right time to set your financial goals for the year 2019. If you are exploring the different investment options, then consider buying a house too. It is a good year to leap in this direction, thanks to a welcoming interim budget. It is perfect for first and even second time home buyers. There are plenty of initiatives taken that will help you in making your dream home in 2019.
Some of the proposals that will help you take the plunge include,
Extension of TDS Exemption: The TDS threshold for tax deduction on rent is proposed to increase to Rs.240,000 from the existing Rs. 180,000. As per Section 1941 of the Income Tax Act, the lessee should deduct tax at source if the annual rent exceeds Rs. 180,000. However, this interim union budget gives an extension, which will benefit homeowners. So, those who are planning to buy a second home for a rental purpose will get the benefit of this extension.
The Benefit: Increased TDS exemption gives tax relief and monetary gain to homeowners.
No Notional Rent on Second Home: The other proposal floated in the interim budget is also advantageous for home buyers that of exempting notional rent on income tax on a second self-occupied home. According to the earlier norms, if a person owned more than one property, then anyone property could be declared as self-occupied. As for the other property or properties, whether they were in let out state or vacant, income tax had to be paid on a hypothetical or notional rent that one could get from the house. However, as per the interim budget, no tax can be levied on notional rent if the second house is vacant or occupied by the family. This move is perfect for white-collar job migrants. You can explore property options in different cities and invest without worrying over tax. You can also invest in your native and let your family live there happily, and you will not have to pay any tax on notional rent.
The Benefit: Buy a home or second home without thinking about extra tax payment.
Rollover of Long-Term Capital Gains (LTCG): According to Section 54 of the Income Tax Act, an individual can get tax exemption from LTCGs provided the money gets channelized into buying another property. The interim budget eased it further by proposing a rollover of LTCG of up to Rs. 2 crores towards investing in two residential properties. So, if you get Rs. 2 crores by selling a residential property, then you can utilize this money in buying two residential properties, and you will not have to pay tax towards it.
The Benefit: Saving tax on long term capital gains will be possible with this change by investing in a property.
The budget proposal is proving beneficial for people in buying a property. You can get more rent, save tax on your self-occupied or vacant second home and easily invest your capital gains in residential property without paying any tax. With such benefits your way, the time is ripe to seek financial gains and of making your property. If you are looking for a beautiful nest for yourself or from an investment point of view, then visit Valmark Orchard Square. This project includes 2 and 3 BHK apartments in JP Nagar 8th Phase, Bengaluru and has every basic and luxurious amenity.
Valmark Orchard Square: RERA: Reg. No. PRM/KA/RERA/1251/310/PR/170915/000204
Spread over 3.25 acres, Valmark Orchard Square, BBMP approved flats in Bangalore, has lush green ambience, plenty of open space and every amenity you desire. It is perfect in terms of location, facilities and even the apartment layout. If you are thinking of making an apartment in Valmark Orchard Square a part of your financial goals of 2019, then view the brochure https://www.valmark.in/valmark-orchard/images/VOS_ebrochure.pdf, connect with the sales team and let’s have your goal accomplished. After all, buying a home is a satisfying and elating experience. Let’s make you a part of the Home Owners League.
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