Budget 2019 - IMPACT on REAL ESTATE

1. BUDGET
2 19
IMPACT ON INDIAN REAL ESTATE
The Operating System for
Property Management

2. FOR PROPERTY OWNERS
EXEMPTION FROM NOTIONAL RENT FROM 2ND
SELF OCCUPIED HOUSE
Previously:
• If you own 2 or more properties, you are liable to pay
income tax on the notional rent from all properties
except the 1st one (Even if they are occupied by self or
kept locked).
Now:
• Property owners won’t have to pay tax on the 2nd
property (Deemed to be self-occupied) till March-2020
1

3. TDS THRESHOLD INCREASED TO Rs. 2.4L
Previously:
• Tenants of properties (in non-residential dwellings) need
to deduct and remit TDS if the annual rent higher than
Rs. 1.8 Lakhs
Now:
• Tenants of properties need to deduct and remit TDS only
for those properties with annual rent higher than Rs. 2.4
Lakhs
FOR PROPERTY OWNERS
2

4. SECTION 54 OF INCOME TAX EXTENDED TO 2
PROPERTIES
Previously:
• Under section 54, when a property owner sells a real
estate asset, the capital gains tax can be deferred if the
owner re-invests the money into another real estate
asset. This provision can be used only once in a lifetime
Now:
• This provision can be availed even if the owner is using
the proceeds to buy 2 properties instead of 1 (Limit of Rs.
2Cr applicable on sale value)
FOR PROPERTY OWNERS
3

5. EXEMPTION IN LEVY OF TAX ON NOTIONAL RENT
FOR UNSOLD INVENTORY FROM 1 TO 2 YEARS
Previously:
• The Real estate developers need to pay a notional tax on
their unsold inventory after 12 months from the date of
completion of their project
Now:
• The grace period availing this exemption has been
extended from 12 months to 24 months.
FOR REAL ESTATE DEVELOPERS
4

6. INCENTIVES TO BUY AFFORDABLE HOUSING UNDER
SEC 80-IBA
Previously:
• Exemption from Capital Gains tax for people buying an
affordable house under Sec 80-IBA was applicable only if
projects were approved between 2017 till 2019. Basically,
this exempts home buyers from 100% of the capital gains
they might reap from investing in affordable houses
Now:
• This facility has been extended to projects which get
approved
FOR HOME BUYERS
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7. For more information, log
on to
www.thehousemonk.com