Finance Bill 2019 : Key Highlights : Real Estate
The budget proposes to give an additional deduction of Rs 1.5 lakh for the housing loan interest payment provided the loan is sanctioned during April, 2019 till March 31, 2020.
Under the ‘House for All by 2022’ mission, the government aims to build 1.95 crore houses under the Pradhan Mantri Awaas Yojana (Gramin) scheme.
TDS on Sale of Immovable Property
Earlier, the term “Consideration” was not defined for the purpose of TDS on Immovable Property. Now the term ‘Consideration’ for Immovable Property shall include all charges of the nature of Club Membership Fees, Car Parking Fees, Electricity & Water facility fees, Maintenance Fees, Advance Fees or any other charges of a similar nature which are incidental to the transfer of the immovable property.
TDS on hiring services of Contractors / Interior Designers
On payments to contractors, interior designers and other professionals exceeding 50 Lakh, the payer shall compulsorily deduct TDS @ 5 percent from the total payment.
New Model Tenancy Laws
Overriding the current rental laws, the Finance Bill proposes to bring New Tenancy Model. It expects to balance the rights & responsibilities of Landlords.
Study in India Scheme
It also proposes to establish separate ‘Student Housing’ projects under its ambit which shall positive impact over Real Estate sector.
Stock Exchanges to Collect Stamp Duties
Designated stock Exchanges & Depositories shall be authorized to collect Stamp Duties on the Sale & Transfer of the Securities which shall be remitted to the respective state treasuries.
Finance Bill also proposes to change the rates of the existing Stamp duties levied on different instruments under the Indian Stamp Act, 1899. However, the classifications based on which the rates shall be increased have not been clearly spelt out yet.
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