Every Indian to have a house?
Mentioning measures for promoting affordable housing in the real estate sector, the Finance Minister said that the scheme for profit-linked income tax exemption for promoters of affordable housing will be broad based. Now, instead of the built-up area, the carpet area of 30 and 60 square meters will be counted.
Also the 30 sq mtr limit will apply only in case of municipal limits of four metropolitan cities, while for the rest of the country a limit of 60 sq mtrs would be applicable. In order to be eligible, the scheme was to be completed within three years of its launch but now it will be extended up to five years.
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The tax on notional rental income will be applicable after one year of receiving the completion certificate so that builders get some breathing time for liquidating their inventory.
Announcing changes in the capital gain taxation provisions in respect of land and building, Jaitley said that the holding period for considering gain from immovable property is being reduced to two years from existing three years. Also, the base year for indexation is proposed to be shifted from April, 1981 to April, 2001 for all classes of assets including immovable property.
With regard to new capital for Andhra Pradesh, land holdings that are pooled for creation of the new capital city under the government scheme, will be exempted from capital gain tax.