new Delhi. Everyone dreams of his house. People invest a major part of their deposits to buy it. In such a situation, if you get help from the government, then it will be icing on the cake. The government has made a big announcement to bring a smile on the face of home buyers and to improve the situation of real estate. Under this, for the first time, those taking up to Rs 2 crore will get up to 20 percent income tax exemption. Its benefits can be availed till 30 June 2021.
Difference between stamp duty and agreement value doubled
To enable both buyers and builders to benefit from the scheme, the Finance Minister has announced to double the difference between circle rate (stamp duty value) and agreement value (purchase price) for primary sales of housing units up to 2 crore. . Since the new directive, this gap has been increased from 10 percent to 20 percent under section 43 (CA) of the IT Act. Hence, buyers of these units will get a tax rebate of up to 20 percent under Section 56 (2) (x) of the IT Act.
Learn how to get the benefit of the scheme
The price of the property has fallen due to the decrease in the circle rate during the pandemic. In such a situation, the builders were having trouble selling their built flats. But after the rebate given by the government, the builders will be able to sell the flats even at 20% below the circle rate. This will increase flat sales. Also, buyers will get houses cheaply and will also get the benefit of tax exemption.