A proposed 1% TDS on homes exceeding Rs. 50 lakh, outlined in Budget 2013, is set to take effect in June, potentially impacting luxury housing sales.
Budget 2013-14: Rs.1 lakh interest deduction for first-time home buyers, benefiting middle-income class
Budget 2013-14, announced by Finance Minister P. Chidambaram, introduces mixed measures impacting both high earners and common taxpayers, with changes in tax structures, luxury items becoming costlier, and benefits for first-time home buyers.
Budget 2013 offered limited benefits to the real estate sector, primarily aiding first-time homebuyers with tax deductions on home loans up to ₹25 lakh.
Budget 2013 is anticipated to favor home buyers, with potential provisions for affordable housing. Realty players seek tax exemptions and lower interest rates.
Indian real estate players anticipate the Finance Minister's budget to lower construction finance costs, boost the sector, enable affordable housing, and expedite project clearances.