Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: empanelment :: list of goods taxed at 4% :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: cpt :: form 3cd :: TDS :: articles on VAT and GST in India :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: due date for vat payment
 
 
« Indirect Tax »
 Indirect tax collections rise by 23.1 per cent in November
 Government waives service tax charged while making payments through credit card, debit card, charge card or any other payment card; waiver limited to payments up to Rs. 2,000 in a single transaction
 Clarification Regarding Filing of Offline Challans with IEPF Authority under Companies Act
 Cash deposits in Jan Dhan accounts drop after govt warning: income tax dept
 Indirect tax receipts to see small, brief hit’
 There is no tax on interest income of up to Rs3 lakh a year for senior citizens
 Chidambaram favours change in direct tax rates
  Further rationalization of revised simplified procedure for fixation of brand rates
 Kerala to accept demonetised banknotes for payment of state tax till Nov 24
 Centre-state gridlock over GST jurisdiction remains, could threaten tax rollout
 India to levy tax on investments from Cyprus from April 2017

Tax incentive for home loan principal repayment must be hiked
February, 11th 2016

Building a house is one of the major accomplishments in the life of every individual. With affordability traversing in most of the cities, the hopes of the home buyers are revolving around getting tax incentives and deductions from this Union Budget 2016, which can ease some of their burden. A few of the common expectations among home buyers from this budget are as follows:

Currently, any pre-construction interest is allowed for deduction only if the project gets completed within 3 years of starting of the construction. After getting possession, one can claim the deduction within five years from possession in equal installments under Section 24B. The buyers are looking for applicability of the deduction on account of interest payment available under section 24, from the year in which capital was borrowed.

The interest on home loan should be allowed for deduction to the extent of full interest paid at least in respect of one house. Currently, a 100% deduction on home loan interest for rented houses is available while owner occupied houses are eligible for only INR 2.0 lakh deduction under 80C. This rule should be rationalised and deduction available should be 100% of interest for both rented, as well as owner occupied houses.

Home buyers are looking for an extra incentive for home loan principal repayment, which is currently included in the rebates under section 80C of income tax. The exclusion of principal repayments on home loans from benefits under Section 80 C is what home buyers are looking for.

Rental housing is one of the key areas that can boost housing demand in the country. There has been a lot of talk also to promote rental housing. However, currently rental income is treated as other income for income tax calculations and it gets same tax treatment as per individual tax brackets. Reduction in the tax bracket for rental income will improve the yield in the hand of the owner and will boost rental housing in the country.

Currently, under section 24(a) 30% of the annual value can be claimed as deduction for repairs, maintenance and insurance, etc. this is irrespective of the actual incurred expenditure. The buyers are looking to increase the deduction under this head to the extent of 50%.

Beside all these expectations, all the residential real estate buyers are looking for is the enactment of the Real Estate Regulation Bill. The hopes are high that the bill will bring much needed relief to the home buyers by making the sector more transparent and accountable. Another expectation being the increase in disposable income in the hand of individual taxpayers, which all of us are looking for. With Union Budget 2016 going to get announced by end of this month, let us hope for the best for homebuyers who are sitting on the fence and waiting for some positive news to realise their dream of home ownership.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions