Sitharaman proposed extending the date of the penalty on the loan by taking advantage of the additional discount of one lakh fifty thousand rupees against the interest paid on the loans purchased to purchase an affordable home for another year in the 2020 budget.
Nirmala Sitharaman Minister of Finance presented the Federation’s 2020-21 Budget on February 1. This was the second budget in the second term of the current government.
“The fundamentals of the economy are strong and have ensured macroeconomic stability. Inflation has been well contained. Banks have seen a thorough clean-up of accumulated loans over the past decade, and then these loans have been recapitalized. Companies got an exit via IBC. Sitharaman said many steps have been taken to personalize Formal on the economy.
In order to achieve the objective of “housing for all” and affordable housing, in the last budget, the Minister of Foreign Affairs announced an additional discount of one lakh fifty thousand rupees for the interest paid on loans purchased to purchase housing at reasonable prices. The discount was allowed on housing loans approved on March 31, 2020, or earlier. To ensure more people benefit from this feature
Ture and to encourage more affordable housing, Sitharaman has proposed extending the date of the loan penalty by taking advantage of this additional discount for another year.
Additionally, to increase the supply of affordable housing in the country, a tax exemption is provided for profits obtained by developers of affordable housing projects before March 31, 2020. To promote affordable housing projects, the Minister proposes to extend the date of approval of affordable housing projects to take advantage of This tax exemption in another year.
Concession to real estate transactions
Currently, while income tax is imposed on capital gains, business profits, and other sources in relation to real estate transactions, if the consideration value is less than the circular rate by more than 5 percent, the difference is calculated as income both in the hands of the buyer and the seller. In order to reduce difficulties in real estate transactions and provide relief to the sector, the Foreign Minister proposed increasing the limit from 5% to 10%.
Rs. 100 million will be invested in infrastructure over the next five years. The project consists of more than 6500 projects in sectors such as housing, drinking water, access to clean and affordable energy, medical care for all, international educational institutes, modern railway stations, airports, bus stations, metro and rail transport, logistics, storage, irrigation projects, etc.
On December 31, 2019, the Minister of Finance launched the National Infrastructure Pipeline with a value of Rs 103 crore lakh.
Concessional tax rate for Co-operatives
Cooperatives play a very important role in our economy by facilitating access to credit, access to inputs, and product marketing to their members. These cooperatives are currently taxed at 30% with an additional fee and stop. As an important concession and in order to achieve parity between cooperative societies and companies, the Minister of Foreign Affairs proposed offering an option to cooperative societies to impose a tax of 22% in addition to 10% additional fees and 4% stopping without Indian Real Estate exemptions/discounts. In addition, the Secretary of State also proposed that these cooperative societies be exempt from the AMT just as companies subject to the new tax system are exempt from the MAT.
It is proposed to reduce the maximum allowable non-bank financial companies (NBFCs) for debt recovery under the Securitization and Rebuilding Financial Assets and Compliance with Security Bonds (SARFAESI) Act 2002 of Rs 500 crore to the size of Rs 100 assets. Crore or loan size of Rs 1 crore is at Rs 50 lakh.
Personal income tax and simplification of taxes
To provide substantial relief to individual taxpayers and simplify the income tax law, Sitharaman proposes to bring in a new and simplified personal income tax system in which income tax rates
Under the new system, an individual must pay taxes at a reduced rate of 10% for income between 5 lakh to 7.5 rupees lakh against the current rate of 20%. For an income ranging from Rs 7.5 lakh to Rs 10 lakh, you will pay at a reduced rate of 15% against the current price of 20%