Property Tax: Now you can claim Nil Annual Value for your two self-occupied properties. This means that tax compliance will be easy and more money will be saved in your pocket.
Property Tax: If you also have more than one property and till now you have been paying tax to the government on it, then there is good news for you. This year’s budget can bring a smile on your face. Now you can claim Nil Annual Value for your two self-occupied properties. This means that tax compliance will be easy and more money will be saved in your pocket.
Earlier, if someone had a second property, he had to pay tax even if he did not rent it out. This tax was decided on the basis of the amount of potential rent. If someone had to live in another city due to job, then he had to prove that his first property is self-occupied, so that he could get tax relief.
Exemption given in this year’s budget
At the same time, these conditions have been abolished in this year’s general budget. According to Ravi Shankar Singh, MD, Residential Transaction Services, Colliers India, “Earlier, taxpayers had to prove that their other property was vacant due to work or business reasons. But now with the removal of these conditions, the complexities related to tax have reduced.”
How much tax will be saved?
ET has written quoting Delhi-based chartered accountant Manoj Pahwa that if someone is not living in his property, then now he will get a lot of benefit. Now there will be no need to provide proof of living at another place in connection with work. This is a relief especially for those professionals who are working in different cities.”
How much will taxpayers benefit?
Delhi-based legal professional, Abhijeetam Upadhyay, earlier used to pay about Rs 10,000 tax every month on his vacant house in Gurugram. Now he happily says, “Now this money will remain in my pocket. The benefits of this move are not just financial, but parents will prefer to buy a house for their children in advance.”
For some people, this saving is even more. Chartered Accountant Sachin Garg says, “Earlier I used to pay Rs 65,520 tax annually on estimated rental income. Now this change will save me a lot.” Mukul Mathur of Noida says, “The estimated income from my second property was around Rs 9 lakh, on which I will no longer have to pay tax. This will save me around Rs 1.8 lakh.”
Real estate sector will also benefit
This change can prove to be good not only for your pocket but also for the real estate market. According to experts, this reform will promote investment in residential real estate. Anuj Puri, chairman of ANAROCK Group, says, “This step will promote home ownership and investment in primary and secondary housing market.”
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