Previous year was not that great for the real estate market and since demonetization the market has taken a further downturn. But with the passage of time things are coming back on track and partial credit for it goes to the effort taken by the Government. Here we have to understand one thing, like every good thing is difficult to adapt at first but has a beneficial long-term impact. Demonetization too slowed things down at first but it has great advantages that will revive the economy.
The year 2017 is being considered as a great year for home buying. We have enlisted a few reasons is support. All these are government launches incentives and schemes that a prospective home buyer can take advantage of –
- Real Estate Regulatory Act
RERA will help regulate the help regulate and bring transparency into the real estate sector. Also, its is beneficial both for the developers and buyers. A lot of clarity, in the sense of working and procedures will come with its initiation. With RERA now an integral part of real estate picture will reassure buyers confidence into the market, thus improving sales figures in the market. Timely completion of project, mentioning of carpet area, mandatory provision of information like land title, approval layout etc are of the many improvements that will come with the act.
Pradhan Mantri Credit Link Subsidy Scheme
Effective for 1st Jan 2017 thes aid scheme offers an interest subsidy of INR 2.3 2.5 lac to the buyers who intend to buy a house ranging up to 110 sq.mtr. The condition here is that neither the beneficiary nor any of his family members should have a Pakka house under their name.
Income Tax Exemption for Buyers
Under Section 24(b) buyers are eligible for income tax exemption. Interest on home loan increased from INR 1,50,000 to INR 2,00,000 for 5 years instead of 3 years.
Under Section 80C tax exemption is applicable on principal amount with limit INR 1,50,000 with other exceptions like Bank FD’s, LIC Premium, etc.
Service Tax
For projects developed under Prime Minister Awas Yojana home buyers are now not required to pay any service tax. Note it is applicable on flats with up to 60 sq. mtr, carpet area.
Employees Provident Fund
Government has now removed restrictions on the withdrawal of EPF by salaried persons in order to buy home. EPF members can now withdraw 90% of the amount to make payments for the new home.
