Budget 2020 Latest News: Experts seek incentives for homebuyers to revive real estate sector
Budget 2020 Latest News: Among others, an increase in exemption limit on the interest loan repayment and widening of the scope of section 80c are some of the bigger demands that are before Finance Minister Nirmala Sitharaman, according to experts. (#BudgetOnZee)
Budget 2020 Latest News: How to save money when things are not good? Where to invest to get good returns? Zee Business experts Gaurav Mashruwala and Alok Agarwala, Research Head at Bajaj Capital have some Budget 2020 (#BudgetOnZee) actionable tips that they revealed on Zee Business Money Guru show. Check out what they have in mind:
These experts said that their expectations from the Budget 2020 are that the exemption limit on the interest loan repayment should increase. Under Section 24 of the income tax act, the current exemptions on home loan interest is up to Rs 200000. It should be increased up to Rs 5 lakh, Mashruwala said. These steps, if taken, would help revive the economy, help people deal with inflation and unemployment and also increase consumption.
Mashruwala also wants the government to make exemptions under Section 80C wider, give taxation benefits on health insurance and also give greater attention to the needs of senior citizens. There should be a section exclusively for a home loan, separate from 80C, he added. The principal amount in the home loan has an exemption of up to Rs 1.5 lakh under Section 80C.
If the homebuyers are happy, then it will augur well for the real estate sector, the experts said. This will act as a booster dose for the real estate sector which has been facing liquidity crunch for a long time.
The tax benefits will drive people towards buying homes. An improvement in the sentiments of the real estate sector will eventually drive the economy forward.
There has been no change in Section 80C since the financial year 2014-15. For salaried class, the government is currently giving income tax rebates on investment of up to Rs 1.5 lakhs. There are many options for investments under 80C. The government offers exemptions on PPF, EPF and life insurance.
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The experts said that consumption will have to be provided a boost to revive sentiments around the economy. In the fiscal year 2011-12 (Apr-Mar), the savings rate was around 23.6% which has come down at 17.2% in FY18. So, people should be incentivized to increase the savings rate, they said.
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