tax exemption – Eshcinsel http://eshcinsel.net/ Sun, 17 Apr 2022 16:04:33 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://eshcinsel.net/wp-content/uploads/2021/10/icon-41-120x120.png tax exemption – Eshcinsel http://eshcinsel.net/ 32 32 GUEST VIEW: Property tax reform faces another climb | https://eshcinsel.net/guest-view-property-tax-reform-faces-another-climb/ Sun, 13 Mar 2022 01:54:00 +0000 https://eshcinsel.net/guest-view-property-tax-reform-faces-another-climb/ ONCE AGAIN, State Rep. Frank Ryan deserves credit for tackling the ever problematic issue of school property taxes with a refreshingly honest approach. The Lebanon County Republican is once again introducing legislation to eliminate school property taxes and change the way education is funded in Pennsylvania. For many years, there has been a movement to […]]]>

ONCE AGAIN, State Rep. Frank Ryan deserves credit for tackling the ever problematic issue of school property taxes with a refreshingly honest approach.

The Lebanon County Republican is once again introducing legislation to eliminate school property taxes and change the way education is funded in Pennsylvania.

For many years, there has been a movement to stop relying on property taxes to fund schools. People are hit with bills of thousands of dollars every year. This is especially difficult for seniors on fixed incomes. In many cases, these people no longer have to make mortgage payments, so the tax bill is paid in one large lump sum each summer.

Although the idea of ​​eliminating the property tax is widely popular, especially in these areas, the idea continues to run into a few hiccups. This is first and foremost about providing a fair replacement for the income at stake and ensuring that it is as reliable a source of money as the property tax has been. The other issue is how to distribute revenues to school districts.

For starters, Ryan acknowledges that the complexity of the current school funding model has made it difficult to change. And he urges people to accept the reality that people will always have to pay taxes to fund education, no matter what system is in place.

“Everyone wants to get rid of property taxes as long as the other person is the one who is going to pay the replacement tax,” the Lebanon County Republican said as he introduced Bill 13. “Clearly any solution will require sacrifices from all Pennsylvanians.

It may not be what people want to hear, but it is the truth. To eliminate local property taxes, the state government would need to find $16 billion beyond its current contribution of more than $8 billion. There’s no painless way

Ryan’s bill is similar to legislation he has introduced before, without success. The legislation seeks to replace property tax revenues with sales and income taxes. This would raise state income tax to 4.92%, with those funds going to the local school district. The state sales tax would increase by 2%, with those funds going to each county to be allocated to school districts. Sales tax would be expanded to include clothing and food, with a food tax exemption for recipients of public assistance.

The bill would tax retirement income, excluding income from Social Security, military pensions and member contributions to retirement plans. Workers’ contributions to a pension plan would be tax deductible.

This is where things get tricky. A tax on retirement income is bound to be unpopular with seniors, even the riding most enthusiastic about eliminating the property tax. Taxing clothing and food is a regressive levy that would hurt vulnerable Pennsylvanians and negatively affect retailers in the state.

Having the state and counties dictate how much money each district gets takes away a key aspect of local control over education. A fixed income tax is unlikely to generate the revenue needed to meet rising costs over time. And given the state’s track record of funding education, we’re not convinced there will be an equitable distribution of resources any more than there is now. It could make things worse.

That’s not to say these ideas aren’t worth discussing. They are. Any solution is going to be painful for someone. But persuading people to accept this requires a steep climb.

We commend Ryan for pointing out that if the school property tax is eliminated, replacing lost income will require many Pennsylvanians to make sacrifices.

We agree that property tax has serious disadvantages, but we also believe that the state must ensure that there is enough money available for a solid education in all communities across our Commonwealth. We hope that Ryan’s insights will spark further discussion on how to solve both problems in a way that most of us can accept.

Reading Eagle | PA

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Non-profit corporation providing education eligible for income tax exemption for charitable activities: Calcutta High Court https://eshcinsel.net/non-profit-corporation-providing-education-eligible-for-income-tax-exemption-for-charitable-activities-calcutta-high-court/ Sun, 06 Mar 2022 07:21:00 +0000 https://eshcinsel.net/non-profit-corporation-providing-education-eligible-for-income-tax-exemption-for-charitable-activities-calcutta-high-court/ By Rasheela Basher – On March 6, 2022 12:51 The Calcutta High Court has ruled that a non-profit organization under Section 25 of the Societies Providing Education Act is eligible for income tax exemption as it would be considered charitable for the purposes of the Income Tax Act 1961. Assessed established by the National Science […]]]>
Non-Profit Society - Education - Income Tax Exemption - income tax - Charitable Activities - High Court of Kolkata - Taxscan

The Calcutta High Court has ruled that a non-profit organization under Section 25 of the Societies Providing Education Act is eligible for income tax exemption as it would be considered charitable for the purposes of the Income Tax Act 1961.

Assessed established by the National Science Museum Board under the Department of Culture, was registered under Section 25 of the Societies Act 1956, is engaged in the design and development of knowledge centers such as science museums, planetariums, etc., had applied for registration as a charity under Section 12AA of the Income Tax Act 1961, which was granted. The assessee had completed various turnkey projects across the country, including for Reserve Bank of India (RBI) and Surat Municipal Corporation. The assessee had filed his tax return declaring his income nil after claiming an exemption under Section 11 of the Income Tax Act.

The Valuation Officer considered that the surplus generated by the assessed company was derived from commercial activities and therefore rejected the exemption under the proviso of Article 2 (15) and Article 13 ( 8) of the law.

Counsel for the assessee in the Calcutta High Court argued that since the assessee company was registered under Section 25 of the Companies Act 1956, all of its activities were deemed to be non-profit.

Section 11 of the Income Tax Act provides that income from property held within the framework of a charitable trust shall not be included in total taxable income to the extent that such income has been allocated to charitable purposes in India. Article 2(15) gives the definition of “charitable purpose”, which includes education or the advancement of any other object of general public utility.

A bench of the Calcutta High Court, consisting of Judges TS Sivagnanam and Hiranmay Bhattacharyya, after analyzing the main objects of the valued company under its memorandum of association, observed that the ITAT had not taken into account the main objects for which the valued company was created.

The court held that the ITAT had misinterpreted the nature of the business carried on by the assessed company as the objects behind its incorporation under Section 25 of the Companies Act 1956. The High Court held that the object behind the projects carried out by the assessee, such as the creation of science centers or turnkey museums, was in the public interest to educate the general public in a simple and attractive way. He observed that the technical expertise and research carried out by the assessee, for the realization of projects for a specific purpose, could not be within the reach of an entrepreneur.

Accepting the assessee’s assertions, the Court held that where a company has been incorporated as a not-for-profit organization under the Companies Act and its profits are used solely for the promotion of its objects , its activities would necessarily fall within the definition of a “charitable purpose” under the Income Tax Act 1961.

“Thus, where the assessee has not been established for the purpose of making a profit and the income it generates is to be applied to the promotion of the objects as set forth in the memorandum and no part of the income cannot be paid directly or indirectly by way of dividend or bonus, etc., it must necessarily be considered that the assessee is a non-profit organization but a public service company and the activities of the company for which he has been created would undoubtedly show that the company, by creating knowledge parks, is committed to imparting education and is also committed to promoting other aspects of general public utility so that they fall within the definition of charitable purpose as defined in Section 2(15) of the Act.The High Court said.

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Dori: Local apartment developers get 95% tax relief, landlords pay all freight https://eshcinsel.net/dori-local-apartment-developers-get-95-tax-relief-landlords-pay-all-freight/ Sat, 26 Feb 2022 07:34:23 +0000 https://eshcinsel.net/dori-local-apartment-developers-get-95-tax-relief-landlords-pay-all-freight/ When property tax bills started arriving in the mail last week, “most” taxpayers screamed at the steep increases they face. Most, that is to say, with the exception of developers who benefit from a reduction of almost 95% on their property tax bills. To get to the bottom of this disparity, The Dori Monson Show […]]]>

When property tax bills started arriving in the mail last week, “most” taxpayers screamed at the steep increases they face. Most, that is to say, with the exception of developers who benefit from a reduction of almost 95% on their property tax bills.

To get to the bottom of this disparity, The Dori Monson Show reached out to King County Assessor John Arthur Wilson to ask: Why are middle-class homeowners being hit so hard while some property owners in several million dollars receive a huge tax break? Dori wanted to know.

“Keep in mind: it’s not the assessor who sets your tax rate — it’s the legislature,” Dori reminded listeners.

But in Washington state, other factors come into play.

An example: Developers of some multimillion-dollar properties in Seattle enjoy tax exemptions of up to 95%, while middle-income earners pay their own tax bill.

Inspired by a tipster, Dori cited The Rooster apartments in Seattle’s Roosevelt neighborhood. The 194-unit building — valued at $77 million with a market value of around $100 million — is taxed on just $3.3 million, Dori told listeners. By comparison, Dori pointed out, owners of a pair of homes near Laurelhurst pay more property taxes than many MFTE developers.

The Rooster is eligible for the City of Seattle Office of Housing’s Multifamily Tax Exemption Program, Wilson explained, because it reserves 20% of its units — 40 apartments — for low-income renters. And it’s not just in Seattle. There are also 421 MFTE buildings in King County.

“It’s another one of those ‘don’t blame me, I’m just the messenger’ cases,” Wilson continued.

The MFTE was to encourage urban villages and infilling, Wilson said. In exchange for offering at least 20% of their units as “limited income or rent,” developers receive significant tax breaks.

“We have to ask ourselves: is there a better way to provide affordable housing than a huge tax giveaway for a property that would probably have been built anyway?” Wilson posed. “A lot of these developments have happened in fast-growing areas.”

Apartments along South Lake Union have also qualified for the MFTE — “as if we should be incentivized,” he added.

Less than two blocks from a nearby Sound Transit station, The Rooster offers a rooftop terrace with views of Mount Rainier, fire pit and barbecue areas, and a dog wash.

Wilson told Dori he was also frustrated with current property tax structures in his King County jurisdiction and statewide.

“Without a doubt, I think people — especially with inflation hitting them on every other front — are more sensitive this time around than they have been in the last couple of years,” Wilson said. .

“People are hurting,” Dori said, while criticizing this session of the Washington State Legislature for “sitting on a $7 billion surplus, and the Democrats want to spend every penny of it and tax new taxes”.

Long concerned about imbalances in property and rental tax structures, Wilson shared his own frustration with the failure of the Legislative Assembly to pass his rent relief bill. This would provide tax breaks to owners of older buildings — and, therefore, to the tenant, if the units remain affordable, Wilson explained. He predicts this proposal could impact nearly 140,000 units in King County and many more statewide.

Meanwhile, Dori lamented, “All the working class people listening to you and me, all the middle class, all the people from paycheck to paycheck, they have to pay 100% of their assessment while somebody someone rich enough to own a 200-unit apartment building gets 95% of their property taxes ripped off.

Listen to Dori Monson weekday afternoons from noon to 3 p.m. on KIRO Newsradio, 97.3 FM. Subscribe to the podcast here.

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Durham ‘tax-free’ church faces potential seizure of huge property tax bill https://eshcinsel.net/durham-tax-free-church-faces-potential-seizure-of-huge-property-tax-bill/ Thu, 24 Feb 2022 04:31:29 +0000 https://eshcinsel.net/durham-tax-free-church-faces-potential-seizure-of-huge-property-tax-bill/ DURHAM, NC (WTVD) — Reverend Johannes Gumbo insists he would much rather preach the scriptures than preach property taxes. “I’m here to preach, not to fight for buildings,” Gumbo said. “It’s just crazy.” But on Wednesday night, Gumbo and his congregation of largely African immigrants in east Durham find themselves in a high-stakes battle with […]]]>
DURHAM, NC (WTVD) — Reverend Johannes Gumbo insists he would much rather preach the scriptures than preach property taxes.

“I’m here to preach, not to fight for buildings,” Gumbo said. “It’s just crazy.”

But on Wednesday night, Gumbo and his congregation of largely African immigrants in east Durham find themselves in a high-stakes battle with the County Durham tax collector.

“Our tax bill is around $87,000,” he said. “No, we don’t have that.”

The church shouldn’t need it. The church does not generate any income. It is a religious entity, exempt from taxes.

Shepherd’s House has worshiped in the sprawling building at the corner of Main and Driver streets since the mid-2000s. It was gifted the property in 2008 by the previous congregation. About four years ago, Gumbo members officially purchased the building, which triggered a trigger at the tax office.

“After a year, 2019, we received a letter asking us to pay taxes, around $30,000,” Gumbo recalls. He said they immediately began trying to contact the Durham County Tax Office.

But when ABC11 contacted the tax division, there was a different story.

“Shepherd’s House received at least two separate notices of the need to file the tax exemption form. And either they didn’t understand or they weren’t given the proper guidance,” said Brian Wardell of the county attorney.

However, church attorney Jamie Paulen argues that after the pandemic took hold, communication with the tax office became nearly impossible.

“These church people are lay people, so they don’t understand that this act prompted the IRS to look into this nonprofit designation. They couldn’t find anyone to answer their calls,” Paulen said.

Gumbo added, “There was no one to answer us. You write a letter, you call, nothing.”

With Shepherd’s House unable to pay, the county is now referring the case to foreclosure proceedings.

In the basement of the church, some of the local organizations that rely on this church as a community space are now caught in the crossfire. Including the women of Feed My Sheep, the pantry that feeds needy families two Saturdays a month.

“People come to feed their souls. And we help feed their stomachs,” said volunteer Rose Greene.

Helen Taylor, another Feed My Sheep volunteer, added: “I don’t think they should close the church or sell the church because the church is really about serving the community.”

The county told ABC11 that state law prevents the tax office from granting the church a retroactive tax exemption so long after taxes were due.

The case will likely end in an appeal to the North Carolina Property Tax Commission.

Meanwhile, the community rallies around Shepherd’s House. Groups like Feed My Sheep, which depend on this space, are hosting a virtual meeting on Thursday evening to raise awareness and help the church fight back.

Copyright © 2022 WTVD-TV. All rights reserved.

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Income tax exemption long stay visa https://eshcinsel.net/income-tax-exemption-long-stay-visa/ Tue, 22 Feb 2022 12:08:00 +0000 https://eshcinsel.net/income-tax-exemption-long-stay-visa/ A man walks past a billboard on Sukhumvit Road, Bangkok. (File Photo: Bangkok Post) The cabinet approved personal income tax exemption for three groups of foreign taxpayers: high earners, retirees and those who wish to work remotely from Thailand, Finance Minister Arkhom Termpittayapaisith said. Mr Arkhom said on Tuesday that recipients would be considered investors […]]]>

A man walks past a billboard on Sukhumvit Road, Bangkok. (File Photo: Bangkok Post)

The cabinet approved personal income tax exemption for three groups of foreign taxpayers: high earners, retirees and those who wish to work remotely from Thailand, Finance Minister Arkhom Termpittayapaisith said.

Mr Arkhom said on Tuesday that recipients would be considered investors in Thailand, as required by the government by offering them long-term residency (LTR) visas.

The first group must invest at least 500,000 US dollars (16.35 million baht) in government bonds, real estate or otherwise in the form of foreign direct investment. They must have amassed at least $80,000 in income over the past two years and have $1 million in assets.

Foreign retirees must be at least 50 years old, have an annual income of $40,000 or more, and invest $250,000 in government bonds or real estate.

Professionals interested in working remotely from Thailand must demonstrate that they have an annual income of at least $40,000, a master’s degree or higher or intellectual property rights, and five years of experience in a research field.

However, a fourth visa-eligible group would be taxed.

Digital Services Experts must work for SET-listed companies or have worked for at least three years in private companies that generate revenues of $50 million per year or more.

This group is considered highly skilled professionals. They are required to work in targeted industries or as academic experts in universities or state agencies.

“However, if [the last group] earns income once in Thailand, they are liable to pay personal income tax at the normal rate,” Mr Arkhom said.

Traisulee Traisoranakul, deputy government spokesperson, said the finance ministry had signaled to the cabinet that the government would not lose any revenue from the plan as the three groups pay no taxes here at present.

However, the government stands to gain by levying a 17% personal income tax on certain highly skilled professionals, she said.

Arkhom said the economic stimulus and investment measures will help attract high-potential foreigners to Thailand. Wealthy foreigners and experts will be encouraged to work in the country.

“(High-potential foreigners) will help broaden the personal income tax base, stimulate domestic consumption and investment, and improve the country’s competitiveness, which will contribute to economic growth. It It is expected that one million foreigners will stay in Thailand,” the finance minister said. .

The Home Office proposals provide for LTR visas for up to four family members, including children up to 20 years old.

Visas will be valid for five years and renewable for up to five years, with a final cap of 10 years. Visa holders will have to pay an annual fee of 10,000 baht and declare their residential address once a year.

After receiving the visa, foreigners can apply for a work permit.

The National Economic and Social Development Council (NESDC) predicts the policy will attract one million arrivals in five years, generating 1 trillion baht in revenue.

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Late and revised tax returns https://eshcinsel.net/late-and-revised-tax-returns/ Mon, 14 Feb 2022 00:10:00 +0000 https://eshcinsel.net/late-and-revised-tax-returns/ The deadline for filing income tax returns (ITRs) for the fiscal year ending March 2021, in the case of individual taxpayers, was December 31, 2021. Missed this deadline? Pursuant to Section 139(4), any person who has not provided a return within the time limit may provide a late return and for fiscal year 20-21, such […]]]>

The deadline for filing income tax returns (ITRs) for the fiscal year ending March 2021, in the case of individual taxpayers, was December 31, 2021. Missed this deadline? Pursuant to Section 139(4), any person who has not provided a return within the time limit may provide a late return and for fiscal year 20-21, such returns may be filed by March 31, 2022.

Late filers, filing between January 1 and March 31, 2022, must pay a late penalty! Those with a total income above Rs 5 lakhs have to pay a penalty of Rs 5,000, and those with an income below Rs 5 lakhs pay Rs 1,000. However, someone with an income of, say, Rs 2 lakhs, who is below the tax exemption limit, but wants to apply for a TDS refund, can file the return, without paying any penalty.

A taxpayer who must obtain a refund from the tax authorities, but who did not file his return before December 31, must he pay a penalty if he wants to file his return now? Yes. For example, if his total income is more than Rs 5 lakhs, even if there is a refund to be claimed, he has to pay a penalty of Rs 5000.

What happens if the declaration is not filed before March 2022? If this deadline is also missed, one cannot voluntarily file ITR. In such cases, the ITR can only be filed in response to a notice from the tax administration. So be sure to file your return before the end of this fiscal year.

Filing late, however, will not bring all the benefits of timely filing! Radhakrishna has over Rs 30 lakhs in losses from F&O (Futures and Options) trading. Koushik has a loss of Rs 10 lakhs from the sale of an apartment. None of these losses, which are otherwise available to be carried forward into the future, may be carried forward if the returns are not filed within the original or extended deadlines. A late return will only give the benefit of carrying forward the losses on the property of the house and nothing else.

Revised statements

After filing the return, if a taxpayer notices errors or has omitted to report certain income or claim certain expenses, he can revise the return, without paying a penalty. According to Article 139(5), even a late ITR can be revised. Those who have filed the declarations can check the Annual Information Declaration (AIS) once and see if anything has been overlooked in the declaration and, if so, they still have the opportunity to revise the declaration.

Delay tolerance

The tax authorities give sufficient opportunities to taxpayers to file the declaration, request the refund. Supposing a taxpayer realizes after a year, say in 2023, that he has failed to file the returns for AY 2021, does he have the option to file the return? He can request the Income Tax Commissioner through a Delay Tolerance Letter and if the officer finds that the reasons for the delay or non-filing of returns are justified, he can grant this request and allow the possibility of filing the declarations.

E-Checking Returns

Finally, be aware that the ITR is considered a valid declaration only if the electronic verification is carried out within 120 days of the date of filing of the declaration. If the return is not verified, the tax return will not be treated as a valid return by the ministry. As a result, your RTI will not be taken back for processing and all the penal provisions for non-production of declarations may be triggered by the department.

(The author is a Chartered Accountant based in Bangalore)

Check out the latest videos from DH:

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Your questions: Income tax | House held for more than two years classified as long-term fixed asset https://eshcinsel.net/your-questions-income-tax-house-held-for-more-than-two-years-classified-as-long-term-fixed-asset/ Tue, 08 Feb 2022 20:00:00 +0000 https://eshcinsel.net/your-questions-income-tax-house-held-for-more-than-two-years-classified-as-long-term-fixed-asset/ The cost of acquisition and improvement is indexed in the case of long-term fixed assets to take into account inflation over the years. By Chirag Nangia I had bought a property jointly with my father in 1987. We then invested Rs 1.6 lakh each. My father’s will gave his 50% share to my mother. My […]]]>

The cost of acquisition and improvement is indexed in the case of long-term fixed assets to take into account inflation over the years.

By Chirag Nangia

I had bought a property jointly with my father in 1987. We then invested Rs 1.6 lakh each. My father’s will gave his 50% share to my mother. My mother sold her 50% share to me in October last year for Rs 25 lakh. I had another property which was sold in 2021 and I used the capital gains to buy the 50% share of the property my mother sold to me. I now intend to sell the apartment at Rs 90 lakh and purchase a new property with the proceeds. How to avoid capital gains tax?
—C Srinivas

For tax purposes, real estate is classified as a long-term capital asset if it is held for a period longer than 24 months, otherwise it is considered a short-term capital asset. In order to calculate the capital gains, the cost of acquisition, the cost of improvement and the expenses (incurred entirely and exclusively in connection with the transfer) must be deducted from the sale price. The cost of acquisition and improvement is indexed in the case of long-term fixed assets to take into account inflation over the years. The Long Term Capital Gains Tax (LTCG) is 20% (including surcharge and disposal, if applicable). Short-term capital gains will be taxed at the applicable slab rates.

In addition, LTCG’s tax exemption on the transfer of residential property is permitted if you invest the capital gains either for the purchase of another residential property within one year before or two years after the date of transfer, or in the construction of another residential property. within three years from the date of transfer.

My mother, aged 75, took out a health card with the DGHS and paid Rs 78,000 this year. Is this amount eligible for an exemption under Section 80D?
—Girish Keswani

Section 80D provides for the deduction of the amount paid as a health insurance premium or any contribution made to the CGHS scheme or any other scheme notified by the central government in respect thereof or any payment made under a preventive health check. In addition, the elderly can claim a deduction of up to Rs 50,000 paid on the medical expenses they have incurred, if no amount has been paid as health insurance premium. Since the payment made by your mother does not fall into any of the above categories, the expenses cannot be deducted under section 80D.

The screenwriter is the director, Nangia Andersen India. Send your questions to fepersonalfinance@expressindia.com.

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How to Claim the Section 80EEA Benefit When Buying a House in Fiscal Year 23 https://eshcinsel.net/how-to-claim-the-section-80eea-benefit-when-buying-a-house-in-fiscal-year-23/ Sun, 06 Feb 2022 07:40:56 +0000 https://eshcinsel.net/how-to-claim-the-section-80eea-benefit-when-buying-a-house-in-fiscal-year-23/ Income tax calculator: In the 2021 Budget, Union Finance Minister Nirmala Sitharaman had extended the tax benefit under Section 80EEA until March 31, 2022, allowing home buyers (who did not own any at the time of the sanction of the mortgage loan) to request an exemption from income tax until ₹1.50 lakh home loan interest […]]]>

Income tax calculator: In the 2021 Budget, Union Finance Minister Nirmala Sitharaman had extended the tax benefit under Section 80EEA until March 31, 2022, allowing home buyers (who did not own any at the time of the sanction of the mortgage loan) to request an exemption from income tax until 1.50 lakh home loan interest payment in his EMI home loan, provided the price of the property is lower 45 million. But, this benefit was not extended in the 2022 budget, which means new homebuyers will have to pay more income tax starting next fiscal year. However, if a taxpayer plans to buy a house in the net fiscal year, they can still take advantage of this tax benefit while filing their tax return in the next fiscal year. What the home buyer needs is to get their loan approved in the current fiscal year and buy a home in the next fiscal year.

Speaking on how a home buyer can still get tax benefit under Section 80EEA of the Income Tax Act, Mumbai-based tax and investment expert Balwant Jain, said: “While filing the ITR from the next financial year, a taxpayer will not be able to claim income tax benefit under Section 80EEA of the Income Tax Act because this benefit ends on 31 March 2022. However, in the event that a taxpayer plans to purchase their dream home in the next fiscal year, they still have the option of availing this income tax exemption benefit. 1.50 lakh interest payment on home loan in one financial year.”

On how an income tax beneficiary who repays an EMI home loan can claim the benefit for the full term of the home loan, when the benefit ends in the current fiscal year, Balwant Jain has said: “The benefit is still available until March 31, 2022. So if a taxpayer is planning to buy their dream home in the next fiscal year, they should apply for a home loan now and get a sanction letter before the end of this financial year, i.e. before March 31, 2022. Having a home loan sanction letter within the benefit period, one could claim a tax benefit under Section 80EEA for the total duration of the home loan even if they buy their house after a certain time but within the given validity period of the approved home loan.

Balwant Jain said the idea would work for homebuyers who don’t own a home at the time of home loan sanction and the price of the property should be lower 45 million.

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Income Tax Deduction of Rs 5 Lakh on Home Loan Interest – 2022 Budget Forecast for Real Estate and Home Buyers https://eshcinsel.net/income-tax-deduction-of-rs-5-lakh-on-home-loan-interest-2022-budget-forecast-for-real-estate-and-home-buyers/ Mon, 17 Jan 2022 04:30:55 +0000 https://eshcinsel.net/income-tax-deduction-of-rs-5-lakh-on-home-loan-interest-2022-budget-forecast-for-real-estate-and-home-buyers/ Budget 2022 real estate expectations: The real estate sector saw a strong comeback last year, with home sales in major cities jumping to 90% of pre-covid levels Budget 2022 Real Estate Expectations: The real estate sector saw a strong comeback last year, with home sales in major cities jumping to 90% of pre-covid levels while […]]]>

Budget 2022 real estate expectations: The real estate sector saw a strong comeback last year, with home sales in major cities jumping to 90% of pre-covid levels

Budget 2022 Real Estate Expectations: The real estate sector saw a strong comeback last year, with home sales in major cities jumping to 90% of pre-covid levels while newly launched units hit 2019 levels.

In a context of uncertainty about the impact of the third wave of the Covid pandemic induced by Omicron on the real estate activities, the sector has enormous expectations with regard to the next budget.

“The residential sector is looking forward to further support beyond the main requirements of industry status, ease of finance and reduced GST rates,” said Anuj Puri, Chairman of Anarock Group.

Puri shared that the following decisions, if announced in the upcoming budget, would help boost residential demand:

Rs 5 lakh Home loan deduction limit

Puri said there is a need to increase the tax refund from Rs 2 lakh on home loan interest rates under Section 24 of the Income Tax Act to at least Rs 5 Lakh. This could instantly inject strong demand for housing, especially in the affordable and mid-range categories.

Kanika Gupta Shori, Founder and COO, Square Yards, also said: “Real estate stakeholders want the standard tax deduction of Rs 2 lakh on interest paid on home loans to be increased to Rs 5 lakhs as it will bring more earners into the bracket and help fulfill their dream of buying a house. The move will also keep housing demand healthy and help property developers recover from losses and boost their wafer-thin profit margins.

Deductions for the repayment of the principal of the mortgage, in addition to the existing 80 C

Personal tax relief, either through reduced tax rates or revised tax brackets, would be a welcome move – especially as the latest increase in the deduction cap under Section 80C (to Rs 1 .5 lakh per year) took place in 2014.

Puri said: “The time is certainly right for another upward revision, but there is no denying that the government currently lacks the space for such a decision. Instead, it can focus on providing more incentives to struggling MSMEs and SMEs after the pandemic. In addition, public spending on infrastructure could still be stimulated.

Redefining the criteria for affordable housing

Currently, affordable housing is defined by the size of the property, its price and the income of the buyer. For example, affordable housing is a unit with a carpeted area of ​​up to 90 m². in non-metropolitan cities and 60 m². in major cities and rated up to Rs 45 lakh for both. The central bank definition, on the other hand, is based on loans granted by banks to individuals for the construction of houses or the purchase of apartments.

Puri said the government should seriously consider revising the per-city pricing parameters to include a wider customer base as part of the benefits of expanding to this segment. While unit sizes as per its definition (60 sqm of carpeted area) are relatively appropriate, unit prices (up to Rs 45 lakh) are unsustainable in most cities. For example, a budget below Rs 45 lakh is far too low for a city like Mumbai. It should be increased to at least Rs 85 lakh.

As with other major cities, the budget range should be increased to at least Rs 60-65 Lakh. With this price revision, more homes will fall into the affordable price, allowing more buyers to take advantage of several benefits like GST rates of less than 1% without ITC, government subsidies and the tax deduction of a total of Rs 3.5 lakh on home loan interest repayment.

Extend Affordable Housing Benefits

According to ANAROCK Research, affordable housing in 2021 was approx. 26% of the overall offer in the first 7 cities. The tax exemption for the ARHC will help avoid labor shortage issues in the event of future disruptions due to the pandemic.

Puri said affordable and rental housing received a big boost in the latest Union budget, with the government extending the additional deduction period of Rs 1.5 lakh for loans until March 31, 2022. Further extension of this benefit will ensure sustained demand for affordable housing. in 2022.

Colliers, a commercial real estate brokerage professional services firm, said the next budget should focus on policies to boost consumer spending and investment.

“Budget 2022 should continue to focus on expansionary policy measures to stimulate consumer spending and investment. Measures to stimulate affordable and middle-income housing in the form of an extension and expansion of the tax benefit for first-time buyers, support measures for developers engaged in affordable housing and rental housing projects will have a positive domino effect on the real estate sector and the overall economy,” said the CEO of Necklaces India, Ramesh Nair.

TDS relief to NRIs

Amit Goyal, CEO of India Sotheby’s International Realty, said the government should reduce TDS on real estate transactions for NRIs and also provide tax penalty relief on the difference between circle rates and deal value properties.

“The difference of more than 10% between the circle rates and the settlement values ​​of the properties results in tax penalties under Section 43CA of the Income Tax Act. The government needs to understand that the difference between the circle fare and the actual price is much higher in some areas of Delhi and other parts of the country. Therefore, the government should consider extending the relief up to 20% of the difference,” Goyal said.

“The other pain point is the withholding tax (TDS) applicable on property transactions for NRIs. It is far too high and should be reduced from the current 28.49% as the refund process takes much longer,” he added.

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Unity plans to extend property tax rebate to all seniors https://eshcinsel.net/unity-plans-to-extend-property-tax-rebate-to-all-seniors/ Sun, 16 Jan 2022 13:00:00 +0000 https://eshcinsel.net/unity-plans-to-extend-property-tax-rebate-to-all-seniors/ Unity supervisors are considering expanding the township’s senior property tax rebate program to include all residents age 65 or older. Last week, supervisors agreed to have attorney Gary Falatovich investigate the possibility suggested by board chairman Mike O’Barto. The township launched a property tax rebate program for seniors in 2012, but an applicant’s household must […]]]>

Unity supervisors are considering expanding the township’s senior property tax rebate program to include all residents age 65 or older.

Last week, supervisors agreed to have attorney Gary Falatovich investigate the possibility suggested by board chairman Mike O’Barto.

The township launched a property tax rebate program for seniors in 2012, but an applicant’s household must fall within the lower income limits set by the federal Department of Housing and Urban Development.

“All I want to do is actually improve it, with a reimbursement program for everyone 65 and over,” O’Barto said. “I think it would be great for older people.”

While the township’s property tax is just $2.2 million, O’Barto suggested that easing that burden could make a difference for someone on a fixed income who struggles to pay other taxes and current invoices.

“There are a lot of older people who are being forced out of their homes,” he said. “It would be worth it if we could help a person stay in their home.”

O’Barto said 314 Unity seniors were eligible for income-contingent reimbursement in 2021, up from 341 in 2018.

He pointed out that just under 22% of township residents are 65 or older, according to 2020 census figures. This would equate to approximately 4,600 of the township’s population of approximately 21,600.

“Nearly 80% of the residents of Unity Township are under the age of 65,” O’Barto said. “It tells me that there are still a lot of young people moving into the township.”

The census also indicates that 81% of housing in the township is owner-occupied.

Certain limitations on the Unity tax refund would remain. It does not apply to a separate 2 mill tax imposed on properties to provide support to the township’s volunteer firefighters.

Seniors must apply by July 31 to receive a discount for a given year. They must also have owned and resided on property in the township for five consecutive years to be eligible to apply.

“You can’t just move from another municipality into Unity Township and get a tax exemption,” O’Barto said.

Jeff Himler is an editor at Tribune-Review. You can contact Jeff at 724-836-6622, jhimler@triblive.com or via Twitter .

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