The recently announced Interim Budget 2019 holds many promises for India’s real estate sector. With increased emphasis on affordable housing, and various incentives for homebuyers in terms of tax concessions, the real estate sector expects many positive changes to unfold this year.

Here are some highlights of the Interim Budget 2019, along with some important expectations.

1. Affordable housing has been one of the dominant themes for real estate in the recently announced Interim Budget. The tax benefits as applicable under Section 80-IBA of the Income Tax Act are now being extended for an additional year and will apply to housing projects approved till 31st March 2020. Additionally, these tax benefits are expected to be extended to the affordable housing sector, along with the doubling of the NIL tax bracket—from 2.5 lakhs p.a. to 5 lakhs p.a. With this, one will see an increase in the demand and supply of affordable housing projects this year. If you have been on the lookout for a home that is well-located, equipped with a wide range of amenities and conveniences, and yet affordable, then make sure to explore your options at Xrbia Vangani, a residential project with 1 & 2 BHK flats in Badlapur.
2. The Interim Budget has also addressed the challenge of unsold inventory in the realty market. The period of exemption from levy of tax on notional rent, on unsold inventories, has been extended from one year to two years, starting at the end of the year in which the project is completed. Currently, it is estimated that there are about 6-7 lakhs of unsold housing units in the major cities across the country. The exemption of tax on notional rent for up to 2 years, in the case of unsold inventory, has been a welcome announcement. At Xrbia Vangani, 7,000 flats have already been sold, and this recent announcement will further encourage many new home buyers to explore the market.
3. For homeowners in possession of more than one property, the exemption of notional tax will now be applicable to the second home. For homeowners who are earning rental income, the threshold limit for TDS has been increased from Rs. 1.8 lakh to Rs. 2.4 lakh, which has been another welcome amendment. The capital gain benefit applicable under Section 54EC has been doubled to Rs. 2 crore and is now applicable to two houses. Investing in a second home can be advantageous in many ways. Apart from allowing you to enable many attractive tax concessions, it can also serve as a lucrative source of rental income.

2019 is expected to be a promising year for real estate in India. With many new top-quality projects in the offing, homebuyers will have an impressive investment portfolio to choose from.

Looking to invest in 1 & 2 BHK flats in Vangani, Badlapur? Discover your dream home today at Xrbia Vangani, a residential project by Xrbia Developers. A well thought-out development sprawled across 48.86 acres of lush landscape, the project is located on the eastern edge of the Mumbai Metro Region (MMR), less than 15 km from MIDC industrial estate of Badlapur. The project houses 1 RK, 1 BHK and 2 BHK homes in India’s biggest affordable housing township.