Relief on home loan principal to go
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Direct Taxes Code Kicks In From 2012
New Delhi: The simplified Direct Taxes Code (DTC) Bill,introduced in Parliament on Monday,which will become effective April 1,2012,holds a few surprises including the decision to withdraw tax deduction on the principal component of housing loans.
The bill,which will replace the Income Tax Act,1961,seeks an increase in exemption threshold of individuals from the current Rs 1.60 lakh to Rs 2 lakh and reduce corporate taxes to a flat 30%.
Revenue secretary Sunil Mitra,briefing the media on the bill,pointed out that only interest component of a housing loan will be considered for deductions.
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In the last couple of quarters,the buying momentum in the property sector has been getting more visible with investors once again betting on this asset.A combination of factors,ranging from stability in property rises to comfortable position on the liquidity front,is making many come back to the real estate sector.
BBMPs 5-point plan taxes entertainment,commercial structures,heavy transport vehicles,industries, Malls and entertainment complexes,skyscraper apartments and commercial buildings that clog roads with teeming visitors,residents and vehicles will be taxed.