Following concessions pertaining to real estate sector have been announced on 01st February 2019, in Interim Budget for year 2019-20

1. Section 54 of IT Act 1961: The benefit of rollover of Capital Gain under Section 54 will be increased from investment in one residential house to two residential house for a tax payer having capital gain upto Rs. 2 crore, wef 01st April 2020.

2. Section 23(4) of IT Act 1961: Exemption of levy of income tax on notional rental income on second self occupied house, wef 01st April 2020.

3. Section 23(5) of IT Act 1961: Period of exemption from levy of tax on notional rental income on unsold inventories, held as stock in trade, has been increased from one year to two years, from the year in which the project is completed.

4. Section 24 of IT Act 1961: Exemption of aggregate of interest paid on loan taken for constructing two houses shall not exceed Rupees Two Lakh, wef 01st April 2020.

5. Section 80IBA of IT Act 1961: Applicability of this section has been extended from 31st March 2019 to 31st March 2020. It will cover project registered upto 31st March 2020

Query