Budget 2019: All You Need to Know About the Benefits for Property Owners

It’s time to buy your home! The much-awaited interim budget for the financial year 2019 is here. The last budget of the present government appears promising. There are many sops offered to the middle class and farmers in this interim budget that was presented by Piyush Goyal in the Parliament on 1st February. This budget also brings all smiles for property owners, thanks to some encouraging benefits. It brings much relief and roars to the $200 billion real estate industry of India. 

Below are some key takeaways and benefits for property owners. 

Extension of TDS Exemption: According to the existing income tax act, section 1941, the lessee should deduct the tax at source if the annual rent exceeds Rs. 180,000 during a financial year. But in this budget, the TDS exemption is extended to Rs. 240,000. This will greatly benefit the homeowners as they will start receiving a higher rental income due to the reduced tax rate. 

No Notional Rent on Second Self-Occupied Home: As per the earlier norms, if a person owned multiple properties, they could choose one and declare it as self-occupied. But the other ones would be considered in let out state by default. For tax computation, the person did not have to pay tax on the self-occupied property. However, for the second property tax would be levied on the notional rent. The term notional rent implies a rent that the property owner would earn if the house was on lease. This tax got levied even if the house was vacant or occupied by parents or kids of the owner.

However, in this interim budget, this tax has been abolished. No tax would be levied on notional rent if the second house is vacant or is occupied by the immediate family. So, it mainly provides tax exemption to a homeowner on two self-owned properties.

A similar tax was also levied on developers even on unsold inventory after one year of completion of the project. However, even for the developers, the exemption is extended for a period of two years, which comes as a big relief. 


Rollover of Long Term Capital Gains (LTCG): Under section 54 of the Income Tax Act, an individual gets exempted from long term capital gain tax, which they got after selling a residential property and utilising the proceeds in buying another residential property.

But in this interim budget, a rollover has been proposed of LTCG of up to Rs. 2 crores towards investment in two residential projects instead of one. So, if you sell a residential property and get around Rs. 2 crores in the form of long term capital gain and utilise this money in buying two more residential properties, then you will not have to pay tax towards it.

A much appreciated and beneficial move for homeowners, they can avail of this benefit once during their life span.

Extension of Tax Benefit Under Housing for All: In April 2017, the section 80-IBA got added in the income tax act that enabled full tax benefit on profit or gains from the business of constructing Housing for All. This benefit is extended by a year and is now applicable on all such projects that are approved and RERA registered by 31st March 2020. However, there are location and carpet area limitations about which you should know.

With such a promising budget for homeowners and the real estate sector, the industry is expected to pick pace in this financial year. Whether you are planning to buy a second home, thanks to the TDS relief move of the government or invest the proceeds of residential property in two new homes, the Vrindavan township project is worth considering. Spread over 111 acres, this township project in Jamtha near Nagpur is great for living and investment purpose. There are different project configurations in this township ranging from 1 BHK to 6 BHK. So, there are many options from which you can choose. Further, this project is strategically located, accessible, tranquil and convenient. You can know more about this township project by Radha Madhav developers from here and plan your home in this spacious and green dwelling. The development nearby and inside the township will be enough to convince you. Connect today and make the most of this 2019 interim budget. 


With Nagpur chosen for the smart city project, an investment here is bound to reap returns in the long term. Moreover, the property here is relatively affordable, and the city offers a good lifestyle, which is comparable to any Indian metro city. So, come home to Vrindavan township, a new life awaits.