Tax concession of Rs. 2 Lakhs per year for 2nd home/flat purchase: Central government
Posted on: 06/Feb/2017 2:58:23 PM
The Revenue secretary Hasmukh Adhia, informed that only a maximum concession of Rs. 2 Lakhs per year can be given to the individual buying a 2nd home/flat. Anything above this is not warranted.
The secretary of the revenue department further informed that the individuals buying a 2nd home/flat must be in possession of a good amount of money. So, no further tax concession is neither warranted nor would be given. Moreover, this concession is generally being misused.
There is some significance and utility value in offering tax concessions to 1st-time buyers of homes/flats.However, it is very unlikely that a buyer buying a 2nd home/flat will stay there. He/she would earn rent through that 2nd home/flat. It is to be noted that the funds available to the government is not much. In this condition, it is not possible to give more concessions to individuals who are in possession of extra money for investment in a 2nd home/flat.
Especially when it is well-known fact that most people in our country are homeless, this kind of concessions for 2nd home/flat purchase cannot be entertained by the central government. The secretary Dr. Hasmukh Adhia told that the government should be helping only the 1st time buyers who do not own a home/flat.
The legal financial act (2017) has been amended to offer a maximum concession of Rs. 2 Lakhs per year can be given for the 1st or 2nd-time buyers of home/flat. Earlier, if the loan has been taken for the purchase of the 2nd home/flat can be given concessions by showing the proof of the rent earned. In other words, the rent earned is to deducted from the loan due for payment and this amount can be deducted from the IT players net income for calculating Income Tax.
