Page 14 - Seniors Today - February Issue
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is not going to get over in just another year
and such provisions should be extended
indefinitely until such time as the situation
changes and there is a substantial amount of
housing available in the country. At present
it appears that about half of Mumbai’s
population lives in slums. So there is a great
need for housing and affordable housing.
The plan to disinvest Air India has been discussed earlier,
in the Budget speeches of 2019, 2018 and even as far SAFE HARBOUR FOR REAL ESTATE
back as 2001 There are certain provisions in the Income-
assessee will not have to file tax Returns. tax Act which are very important and which
This provision will, therefore, be very ought to be understood, not only with
limited in scope and will affect just very few reference to this year’s Budget, but even
people. otherwise.
EXTENSION OF PERIOD FOR Sec.56 of the Income tax Act relates to
INTEREST ON HOUSING LOANS AND income from “Other Sources”. This is the
CONSTRUCTION ETC Under section Residuary head for taxation, the other
80EEA of the Act, if a person wished to take heads being “Salaries”, “Income from
a loan to buy a first residential house, and the House Property”, “Profits from business or
Stamp Duty valuation was upto Rs. 45 lakh, profession” and “Capital Gain”.
then a deduction of Rs. 1,50,000/- would be One of the components of sec.56 is that if
available on account of the interest, provided a person receives a gift from a person other
the loan was sanctioned before 31st March than a close relative, then that gift may be
2021. This date has now been extended to taxed in the hands of the recipient. This is
31.3.2022. So, if the loan is sanctioned by subject to some exceptions.
31.3.2022, the deduction on actual payment of One other component of this section is that
interest will be allowed. if a person buys certain kinds of assets, such
Builders get a tax free benefit in respect as Immovable Property and Shares at below
of profits from affordable housing projects the market value, then the amount of the
subject to the conditions in sec.80-1BA. “discount” can be taxed in the hands of the
This section provides that the Plans had to recipient.
be approved before 31.3.2021 and that the The amount of the discount will also be
construction should be completed within
5 years thereafter. Now this date is being
extended, so the Plans may be approved
by 31.3.2022 and the construction has to be
completed within 5 years thereafter.
This extension is now available for projects
for residential rental housing projects also.
An extension such as this is good, because
the Housing Sector, especially now on account
of the Pandemic and Lockdown, needs We need a report card, for example of how many
hospitals have been opened and how many more patients
support. However, the Housing shortage have been attended to
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