Notional Rent Explained: In Budget 2019-20, Piyush Goyal Announces Tax Exemption On Deemed Rent On Second Self-Occupied Property
Finance Minister Piyush Goyal on Friday proposed tax exemption on notional rent income of second self-occupied house in Interim Budget 2019-2020.
New Delhi, February 1: Finance Minister Piyush Goyal on Friday proposed tax exemption on notional rent income of second self-occupied house in Interim Budget 2019-2020. Currently, income tax on notional rent is payable if one has more than one self-occupied house. Goyal announced the relief for home-owners considering the difficulty of the middle-class having to maintain families at two locations on account of their jobs, children’s education, care of parents etc. Budget 2019: Sops For Farmers + Tax Relief to Middle Class = Another Term For Narendra Modi?
What is Notional Rent?
When you own a property, a certain amount is calculated, which is the assumed rent of that property according to current market standings. This is calculated in case the home is not rented out, which means there is no income being generated from that property. This rent amount is known as notional rent or deemed rent. Budget 2019-2020 Highlights: Minimum Income Support For Farmers, Tax Relief For Middle Income Groups And More in Piyush Goyal's Interim Budget
Earlier, those who owned a second property had to pay taxes on notional rent even if they themselves were living in that property. With Goyal's Budget 2019 proposal, this tax will be scrapped if the homeowners are themselves staying in the second-owned property.
Meanwhile, the TDS threshold for deduction of tax on house rent has also been proposed to be increased from Rs 1,80,000 to Rs 2,40,000 for providing relief to small taxpayers in the Budget presented by Piyush Goyal today.
(The above story first appeared on LatestLY on Feb 01, 2019 02:32 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).