The central government may make several announcements in this budget to give a boost to the housing sector. The government hopes that by doing this, people will get more job opportunities and help in reviving the sluggish economy.
Buyers can get tax rebate
According to the Economic Times, the central government may announce a big tax rebate for home buyers in the budget. At the same time, buying an affordable house will also benefit on lower interest rate and buying another house. A government official said that the government’s plan is to give some boost to the real estate sector, so that the government as well as the people can benefit. This proposal can be announced in the budget to be presented on July 5.
No interest will be charged at the time of construction
According to the proposal, the government will not take any interest on home loans on the houses under construction. At the same time, more discounts on interest can also be announced to home buyers. In 2014, the central government increased the interest rebate from Rs 1.5 lakh to Rs 2 lakh.
Number of unsold flats will end
The government hopes that this will reduce the number of unsold flats across the country and start work on new projects.
45 to 60 thousand rupees will benefit
If the government takes this step, then those paying 30 percent tax can benefit from 45 to 60 thousand rupees per year. First, people had to make a claim to get a discount on interest on buying a second home. There was no fixed limit for this. This will also help people to reduce the loss on rental income.
