Categories: Business

Government exempts properties in Delhi's unauthorized colonies from income tax

Photo: FILE

Delhi's unauthorized colonies gets tax relief

new Delhi. A big relief has been announced by the government to those who buy houses or land in Delhi's unauthorized colony. The government has announced income tax exemption to the house or landowner. This discount will also be available in cases where the purchase is less than the market price. It has been announced to regularize these unauthorized colony only last year. Due to regularization, people living in these colony have got legal rights to their house or land.

In fact, due to being unauthorized, many homeowners bought property in these colony at a price below market price or circle rates. Now the government has given income tax exemption to these land buyers, if the rebate is not available then these landlords would have to pay tax on the basis of market price difference of purchase price.

According to the notification issued by the Central Board of Direct Taxes, the exemption will be applicable from April 1, 2020 and will be valid for assessment year 2020-21. At present, when the purchase price is less than the market price, the tax is calculated based on the difference between the fair market value and the purchase price. In December last year, around 1700 unauthorized colonies in Delhi were regularized. After the approval by the house, the ownership of the property was decided on the basis of power of attorney, sale agreement, will or possession letter. In most of the cases, the purchase price was less than the circle price of the area, in such a situation a tax was imposed on all these landlords, although now they have been exempted.

This post was published on June 30, 2020 9:10 pm

Content Team

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