Realtors See Boom After Budget Tax Sops

Allowing 2 houses to be marked as self-occupied, doubling tax exemption on rental income to boost housing sector

- BENN KOCHUVEEDAN @MUMBAI

THE realty sector is pleased as punch with the budget announcement as it will boost the housing sector in general and rental housing in particular. It continues to focus on affordable housing.

The budget has massively increased the income tax exemption limits to ₹12 lakh per annum under the new tax regime, which will encourage people to invest in real estate in general and housing in particular. The second give-away of allowing homeowners to mark two homes as self-occupied (provided one is not rented out, and claim nil valuation), is a big boost to rental housing.

The third measure of more than doubling the income tax cap on rental income to ₹6 lakh from next fiscal from the present ₹2.4 lakh, will give another leg-up to rental housing both for homeowners as well as for those taking homes on rent. In effect, the second measure of allowing nil valuation of two homes is more of a process easing than actual tax benefits.