Get Income Tax Rebate on Housing Loan

Homebuyers to Get Income Tax Rebate on Housing Loan; BIG GIFT! Massive boost for Real Estate Sector Coming

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.

Union Budget 2019

Some Major Key points to know about the Economic Survey 2019

India’s Finance Minister Nirmala Sitharaman tabled the first Economic Survey of the re-elected Narendra Modi government in Parliament. The Economic Survey 2019 is being prepared by Chief Economic Adviser Krishnamurthy Subramanian. Prepared by the new Chief Economic Adviser Krishnamurthy Subramanian, Economic Survey 2019 lays out the roadmap for the Modi government’s next five years.

  • To achieve the PM Narendra Modi’s vision of $5 trillion economy by 2024, India needs to shift its gears to sustain a real GDP growth rate of 8%, says Economic Survey 2019.
  • Economic Survey predicts 7% growth rate for this fiscal.
  • Investment the “key driver” of simultaneous growth in demand, jobs, exports & productivity.
  •  Dwarfs (firms with less than 100 workers) despite being more than 10 years old, account for more than 50% of all organized firms in manufacturing by number. Contribution of dwarfs to employment is only 14% and to productivity is a mere 8%.
  • Swachh Bharat mission: 93.1% of the households have access to toilets. 96.5% of those with access to toilets are using them in rural India.
  •  India still the fastest growing major economy in 2018-19. Growth of GDP moderated to 6.8 per cent in 2018-19 from 7.2 per cent in 2017-18.
  • Economic Survey provisionally estimates 2.9% growth rate for the agriculture,forestry and fishing sector.
  • Survey predicts that working-age population will grow by about 97 lakhs per year in the upcoming decade.
  • NDA 2.0 aims to make the domestic markets more attractive and accessible to foreign investors.
  • Domestic institutional investors, including mutual funds and insurance firms, are net sellers of equities to the tune of nearly ₹8,000 crore in the first 6 months of 2019.
  •  The Economic Survey usually covers and analyses the trends in different sectors including agricultural and industrial production, employment, money supply, infrastructure, prices, foreign exchange reserves, imports, exports, and other relevant economic factors which are essential for framing the Budget.

This year the budget is expected to focus on higher allocation of smart cities, rural electrification, and a rise in capex for railways and defence & 8% growth rate on the back of investments to support exports-led growth to achieve the Prime Minister’s goal of making India $5 trillion economy by 2024-25.