The much-awaited annual event of the Indian economy – the Union Budget — is now over, and it is time to take cues from the announcements and move ahead. The Finance Minister has put the right foot forward by taking an all-together different approach towards growth of the economy by focusing on rural, manufacturing and infrastructure development.
The individual tax rates remain unchanged. If your taxable income is under Rs.5 lakh, the tax rebate has been pegged at Rs.5,000. Further, under Section 80GG of the Income Tax Act, on account of rent paid by an individual the same has been increased from Rs.2,000 per month to Rs.5,000 per month (for those who do not receive HRA benefit).
The biggest takeaway has been for the first time home buyers who take a loan of up to Rs.35 lakh. The interest component of Rs.50,000 can be claimed as tax exemption. This allowance is over and above the existing allowance. But the total value of the property should not exceed Rs.50 lakh to get this additional tax benefit. This move is expected to bring smiles on the faces of those who seek affordable housing; and considering that prices are not getting cheap to own a property, this additional exemption would boost the buying interest in real estate.
for more read at:-
http://www.thehindu.com/todays-paper/tp-features/tp-propertyplus/big-boost-for-affordable-housing/article8315469.ece via NMApp