Tax sops on home loans amid COVID-19

Looking at the gravity of the situation, the Central government and many of the state governments have offered tax holiday for affordable housing and push to rental housing

The various tax benefits offered by government during COVID-19

According to the International Monetary Fund (IMF), the world has already entered into recession. The COVID-19 impact has led to the economic slowdown in India, which has not only affected the common man but also led to a severe blow to employment as well as business opportunities.

However, acting swiftly, a slew of measures were announced by the Finance Minister, followed by a massive policy rate reduction by the Reserve Bank of India (RBI).  

Finance Minister Nirmala Sitharam last year in 2019, announced an additional deduction of up to Rs.1, 50,000 on interest paid on home loans borrowed up for the purchase of an affordable valued up to Rs.45 lakh. This would help make the real estate in India stable to certain extent

Here are some measures employed by the central and state government:

  1. The state government has also created a special funding facility of Rs.200 crore to help small and medium businesses hit by the coronavirus crisis. 
  • Considering the nation-wide coronavirus crisis, state governments of their respective state are contemplating concessionary measures for the citizens. People are being actively encouraged to make use of the online payment facility. 
  • The revision of ready reckoner rates for the State of Maharashtra has been deferred. The Supreme Court of India opined that deferment of GST collection in these crisis times would put the exchequer at risk and will harm the Indian economy.
  • In a major relief to taxpayers, the Central Government has announced that the date for making various investments for claiming deductions under Section 80C (PPF, NPS, etc.), 80D, and 80G (Donations) has been extended.
  • Offering relief to the taxpayers, the income tax returns and income tax audit date have been pushed to October 2020 and November 2020, respectively.
  • The ‘Tax Deducted at Source’ (TDS) and ‘Tax Collected at Source’ (TCS) has been reduced by 25% of the prevailing rates. This step will obtain additional liquidity of Rs.25,000 crore to the system.
  • Moreover, the deadline for disputed tax matter resolution scheme ‘Vivad se Vishwas’ has been postponed up to December 31, 2020.

Conclusively, the Central and State Government has taken rapid and stout measures for giving relief to the common man in property tax. However, the actions taken must not be in a once and for all approach. The Government would do well to constantly monitor the economic condition and turn up with supplementary relief measures for the economy, which is badly hit by the Coronavirus-induced crisis.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Propertypistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information

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