‘Allow 50% exemption from rental income’
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.
Those wanting to apply for a home loan expect changes in the tax structure of such loans.