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    Budget 2019: Big boost for real estate – here’s what it means for you, the homebuyer

    Budget 2019: Big boost for real estate – here’s what it means for you, the homebuyer

    Budget 2019: Big boost for real estate – here’s what it means for you, the homebuyer
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    By Kevin Lee   IST (Published)

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    While builders will benefit from a one-year extension of both the deadline to register affordable housing projects and the exemption on tax on unsold inventory, the budget has good news for homebuyers as well, especially if you own two houses.

    The residential real estate sector was one of the biggest beneficiaries of the Interim Budget, with big-ticket announcements for homebuyers and developers alike. While builders will benefit from a one-year extension of both the deadline to register affordable housing projects and the exemption on tax on unsold inventory, the budget has good news for homebuyers as well, especially if you own two houses.
    Earlier, if you happened to own a second home that you hadn’t put out on rent, you were still expected to pay income tax on the hypothetical or notional rent that the house could fetch you. This has now been scrapped – which means that if you only have to pay income tax if your second house has been rented out to somebody.
    Additionally, changes have been made to the capital gains tax structure for people selling a house to buy another house. Now, under the new framework, you can sell a house to buy two houses while still getting an exemption of capital gains tax on up to 2 crore rupees. This benefit, however, can only be claimed once in your lifetime.
    Apart from the big-ticket announcements, Finance Minister Piyush Goyal also said that a committee of ministers was looking into reducing the GST burden currently being borne by homebuyers. While we’re still awaiting clarity on whether completed houses will be brought under the ambit of GST, this is a heartening sign for potential homebuyers.
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