‘Al­low 50% ex­emp­tion from rental in­come’

Hindustan Times (Chandigarh) - Estates - - HT ESTATES - Arati Bhar­gava ■ ht­es­tates@hin­dus­tan­times.com The writer is a se­nior colum­nist

With just a few days left for the Bud­get to be an­nounced, prop­erty own­ers and those who de­pend on real es­tate for earn­ings are hope­ful that the Naren­dra Modiled gov­ern­ment will be le­nient when re­vis­ing tax poli­cies.

Many peo­ple feel that the tax de­duc­tion al­lowed on rental in­come is low and ought to be in­creased. Delhi-based char- tered ac­coun­tant Nir­mal Ku­mar Jain of Nir­mal Jain and Co said that cur­rently 30% de­duc­tion is al­lowed for col­lec­tion and re­pairs while cal­cu­lat­ing tax­able rental in­come. This, he felt, should be in­creased to 50%.

The 30% de­duc­tion rule was for­mu­lated syears ago and does not re­ally work now. Keep­ing in­fla­tion in mind this de­duc­tion limit should be in­creased,” he added.

Ac­cord­ing to Arvind Sharma, a se­nior cit­i­zen, many peo­ple, es­pe­cially se­niors, are de­pen­dent on rental in­come as the only source of in­come. “With just 30% de­duc­tion be­ing al­lowed, a ma­jor chunk of our rental in­come is tax­able which leads to higher amount of tax paid. The gov­ern­ment should at least per­mit 50% as ex­emp­tion from the rental in­come,” he says.

All those who are think­ing of ap­ply­ing for a home loan want in­ter­est rates low­ered and also ex­pect changes in the tax struc­ture of such loans.

At present, de­duc­tion on loan in­ter­est amount is only per­mit­ted when the loan has been taken from banks or fi­nan­cial in­sti­tu­tions, says Jain. The gov­ern­ment should also ex­tend the de­duc­tion to loans taken from any source, say home-own­ers.

ISTOCK

Those want­ing to ap­ply for a home loan ex­pect changes in the tax struc­ture of such loans.

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