Payment of taxes for your property has been argued by the owners for many years. There was a dire need for reforms in the property laws. That has come in 2019. A major announcement was made by the government of India that redefines some of the crucial property laws, giving the owners a sigh of relief. In the declaration, the ministry of finance made some key reforms that will immensely benefit the property owner.
Here are the newly announced unique tax benefits in 2019 for property owners:
Tax exemption on notional rent for the second property
An individual who owns more than one property had to pay the tax on notional rent, regardless of whether the rent is earned or not. Even if the property is occupied by their relative or parents, the tax had to be paid. As per the reform, Taxation on notional rent for the second property is now exempted. However, the property should not be on rent. Taxpayers can now claim the ownership of two properties (given that no actual rent is earned).
Increase in rent limit for TDS
One of the best benefits of the property tax revision is the increase in the limit of rent to be considered for Tax Deduction at Source (TDS). A person/firm paying rent of up to Rs 1.8 lakhs or above annually had to get their taxes deducted at source (through the employing company). The limit for the same has been increased to Rs 2.4 lakhs now. The only exception is the scenario where the taxpayer is either an individual or belongs to Hindu Undivided Family (HUF).
Profit Deduction under Section 80 (i)
The announcement to extend the benefits under Section 80(i) by one year under the income tax act has been a big boon for the property owners. Housing projects that are registered under RERA till March 2020 comes under this ambit. All the registered real estate projects that have the carpet area of up to 30 square meters will get 100% profit deduction, barring some cases that fall under terms & condition.
The long-awaited property tax reforms have finally been introduced by the BJP government. It has been welcomed by the property owners who can breathe easy. Details about these policy alterations can be thoroughly studied on the respective government websites or by talking to an attorney.
To discuss these policy changes a person can reach out to the support desk of Marbella Grand by calling at +91 9804009999 or through email – info@srgmarbellagrand.com.