The second wave of the Covid-19 pandemic has affected all sectors of the business and also people’s lives in all aspects. The people have faced a major challenge in paying the taxes on purchases, sales, or even in commercial residential properties. Because of the challenges/difficulties confronted by the taxpayers throughout the nation, various steps are taken to ease and give relief to them by the Central Government.
A major tax exemption is done under Section 54 to Section 54GB of the Income Tax Act, which has been made for the people who deal with residential properties, in any manner. As per Section 54 of the Income Tax Act, one can now avail tax exemptions from Capital Gains on selling the residential property if you re-invest it for purchasing or constructing a residential property. Under Section 54GB of the Income Tax Act, the exemption is offered from capital achievement arising out of the switch of a residential property for those who invest the quantity for subscribing to the fair shares of the eligible firm. The Central Government has prolonged the timeline for claiming a tax deduction on the residential houses till September 30th, 2021 which was earlier April 1st, 2021. So, a major extension of the deadline was done for 3 months, just relieving the taxpayers during this hard time. This is good news for every person looking for buying a new home. Major cities of Gujarat like Ahmedabad, Surat, Rajkot, Vadodara have been benefiting more because they have fast-growing and upcoming residential projects.
The government has also given other benefits to the people:
- The deadline for the Vivad Se Vishwas Scheme for payment without interest has been extended by 2 months from 30th June to 31st August 2021.
- An advantage for first-time homebuyers, they can now avail of special tax relief on investment in residential houses. So buying homes during Covid-19 is now easy and tension-free.
- The government has allowed the purchase/construction of 2 Residential houses if the gain is less than Rs. 2 crores. Earlier, the government only allowed the purchase or construction of one residential property.
- The PAN Aadhar linking deadline is also extended by 3 months.
- No tax will be charged on the amount paid for medical treatment to an employee by an employer or a person by any person on account of COVID for FY 2019-20 & subsequent years.
“The compliances to be made by the taxpayers resembling funding, deposit, cost, acquisition, buy, building or such different motion, by no matter title referred to as, for the aim of claiming any exemption beneath the provisions contained in Part 54 to 54GB of the Act, for which the final date of such compliance falls between 1st April 2021 to 29th September 2021 (each day inclusive), could also be accomplished on or earlier than 30th September 2021,” the Ministry of Finance stated in an official assertion.
There are conditions that should be satisfied to claim the benefit of section 54:
- The benefit of section 54 is available only to an individual or HUF.
- The asset transferred should be a long-term capital asset, being a residential house property.
- Within a period of one year before or two years after the date of transfer of the old house, the taxpayer should acquire another residential house or benefit and construct a residential house within three years from the date of transfer of the old house.
So, now buying homes would be stress-free and would be easy. Invest in homes at Shreepad Celebration, Shreepad Park Arena, and Shreepad Infinia for a living experience like never before.