The real estate industry had a real bad 2017 with a lot of new laws being implemented and with the RERA and GST coming into play. However, we’ve all got our eyes on 2018 and everyone in the sector – home buyers, builders and even the agents are hopeful that this might be the year for them.
Also, last year’s budget stated ‘Housing for All’ and with certain measure to boost the real estate sector the aim is to achieve the target by 2022.
Keys90 has therefore, tried to figure out the expectations of the home buyers from the Union Budget 2018. Check these out and let us know if you’re expecting these too –
- Housing Loss Set-Off Limit should be Increased: The Finance Act 2017 restricted the loss from house property which could be a set off against other income, to Rs. 2 Lacs. House property loss in excess of Rs. 2 Lac has to be carried forward and adjusted against the rental income of future years. For the coming year the house buyers are hopeful that the housing set-off limit will be increased to allow tax payers to set off a larger part of the house property loss against other income.
- Additional Deduction for Pre-Construction Interest: According to the Income Tax Act there is an interest on housing loan that is paid for the period during which the house is under the construction phase, and this can be claimed as a deduction in five equal installments from the financial year in which the house is completed. From the coming union budget 2018 the home buyers are expecting that deduction for the pre-construction interest should be allowed in the year of payment. Additionally, a separate limit should be set for the deduction of 2 Lac and above.
- Delay in Construction Property should be Strictly Dealt With: Currently the deduction of the interest on housing loan has been extended from Rs. 2 Lac from Rs. 30,000 if and only if the house has been constructed within 5 years from the end of the financial year in which the loan has been taken. This is not so convenient for the tax payer who might lose tax benefit if the builder delays the construction of the project. Even though RERA aims at ensuring a timely completion of the housing projects, there should be tax laws that should be directed to recognize this problem and provide the buyers a relaxation of the period in case the project construction has been delayed.