Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs

SUPPORT

Menu  
 
Apply Now
Apply Now

Tata Capital > Blog > Impact of 2017 Budget on Home Owners and Home Loan Borrowers

Loan for Home

Impact of 2017 Budget on Home Owners and Home Loan Borrowers

Impact of 2017 Budget on Home Owners and Home Loan Borrowers

People were waiting for the Budget 2017 with eager eyes. Everyone was of the view that the government might do something for the people after the demonetization.

But interestingly, government decided to walk the path of fiscal prudence and decided not to change too much when it came to impacting home lowers or borrowers. Though some chances have been announced, it will be interesting to see how it will impact people.

One good thing that budget did was that it redefined the period of capital gains’ related taxation. Earlier, profit on property sold after 3 years was treated as long term capital gains. But now, this period has been reduced to 2 years.

Short term capital gains are taxed at person’s current tax slab rate. But for long term gains, the taxes are 20% after indexation. So it makes sense to wait a bit before selling a property for profit.

Also, the government has revised the definition of affordable housing. This has some positive impact as affordable housing gets interest subsidy from the government (4% for upto Rs 9 lacs and 3% for upto Rs 12 lacs). Earlier, 30 sq mts in metro cities and 60 sq mts of built up area was included in affordable housing. But now, the area to be considered is carpet area (same 60 and 30 sq mts). This has increased the size of houses (and obviously prices), which will get the benefit of being in affordable housing category.

Another thing that is happening around the budget itself is that interest rates are falling like anything. This means home loan at lower interest rates and lower home loan EMIs. So the combined impact of budget and falling-rate scenario has created a conducive environment for revival of real estate market. And if you were planning to buy a house in near future, it might be a good time to start your house hunt quickly.

Apply for Affordable Housing Loan

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
More About Loans
home loan calculating home loan housing loan rate of interest calculate home loan eligibility documents needed for housing loan quick cash loan housing loan top up home loan transfer home loan with overdraft facility home loan balance transfer calculator home loan disbursement process loan for home extension rgrhcl
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools