New Delhi, Nov 12 (SocialNews.XYZ) In a bid to boost housing sales, Finance Minister Nirmala Sitharaman on Thursday announced an increase in the permitted differential between the circle rale and the agreement value of housing units to 20 per cent from the current mandated limit of 10 per cent till June 30.
The increase in differential will be applicable in residential units of value up to Rs two crore. It will help in reducing the tax liability as tax will be applicable on lower value of residential units.
Section 43CA of IT Act restricts differential between circle rate and the agreement value at 10 per cent. However, prices may actually be lower than that, and the restriction curbs sale of housing units.
Sitharaman said that the decision has been taken to boost sales at a time when demand is low and inventories have piled up.
The income tax relief provides incentive to the middle class to buy homes, she said.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz