Time to Rejoice for Would Be Lessors

December 13, 2006	(Be the first to rate this story!)  Loading ...
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If you are looking to let out your house, you may feel fortunate to have decided about this prospect now. Tax breaks on selfoccupied houses are likely to lose their place in the governmental trend which gives a reason to celebrate to those who earn rental income. The government is thinking about passing a proposal to provide tax rebate for properties occupied by tenants.

According to the prevalent rules; any individuals earning rental income needs to add the received rent to his/her annual income and taxed as per the applicable rate. However, the finance ministry is in talks over this proposal proposed by housing ministry. In case, North block too oversees to leverage benefits from the proposal, then the individual’s income could stand reduced. The rate of appreciation is something that would be decided later.

Tax breaks will attract more and more people to rent out properties thereby reducing pressure on housing, says housing ministry.

Likewise, the proposal if passed will encourage a fresh rush to buy houses when they will see themselves benefited in double ways. Apart from enjoying benefits on the interest on housing loan, they will also be able to save on tax for the second house.

Data showcased by the property surveys show around 9% of the houses lying vacant in few urban areas whereas economically weaker sections and low-income groups have to do without a dwelling. However, people who are not interested to rent out their houses may feel a little dishearten because of the housing ministry proposing to continue with charging tax on vacant houses.

News Published Under:   Real Estate India |

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