For homebuyers, Real Estate sector, and housing finance companies, there is some great news in offing, says this exclusive Zee Business TV report, citing Finance Ministry sources. In a big boost for the real estate sector, it has been revealed , that it may get infrastructure sector status! And that too as a pre-budget gift! Sources revealed that the issue is under discussion. When will this happen? As early as the new year itself! This will come as a big boost for the whole economy.
According to the Zee Business report, the development will have a multi-player impact, and the registered tax payers if willing to buy their dream house will be able to avail income tax benefits under this development. In short, if you are willing to purchase a home, you will get tax rebate provided you are a registered taxpayer and this benefit will be on your tax outgo of up to Rs 50,000, said the report.
Anil Singhvi, Managing Editor of Zee Business, said “If you are paying up to Rs 5 lakh interest in a year then you can save about Rs 50,000 or 10% on your tax outgo.” He added that homebuyers should know that “this is tax rebate not tax deduction.”
This will be applicable from next financial years i.e, April 1, 2020 to March 31 2021, and the new home buyers will get this tax rebate for the first three years of their loan period. Notably, the government has so far given tax rebate on affordable housing through interest subvention scheme, but now this will benefit the real estate’s premium projects too.
Since it will be applicable on buying new houses from the next financial year, the whole real estate sector is likely to get the boost, as in the last 4-5 years prices have not increased.The report said this will also benefit real estate developers, as Rs 1.8 Lakh crore loans are stuck which will get clearance and lead to fresh buying in next Financial Year.