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Direct Tax Code - Please provide INPUTS

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Direct Tax Code - Please provide INPUTS

Last updated: July 22 2010
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  • Direct Tax Code - Please provide INPUTS

    http://finmin.nic.in/DTCode/comments.asp

    All readers are requested to provide inputs for the DTC which is going to in effect from 2011. Specifically, the govt is planning to re-introduce tax benefits for 1.5 lacs of interest paid to the bank for property purchase which was earlier done away with. This is been because of people with vested interests - private banks + builders + related politicians want this provision to keep the RE estate BUBBLE going.

    Hence,I request all to please voice your views against this practice, and ask govt to abolish this 1.5 lacs deduction benefit - it only works in the interests of banks and builders, not the consumer or economy.
  • #2

    #2

    Re : Direct Tax Code - Please provide INPUTS

    Originally posted by pcpune View Post
    http://finmin.nic.in/DTCode/comments.asp

    All readers are requested to provide inputs for the DTC which is going to in effect from 2011. Specifically, the govt is planning to re-introduce tax benefits for 1.5 lacs of interest paid to the bank for property purchase which was earlier done away with. This is been because of people with vested interests - private banks + builders + related politicians want this provision to keep the RE estate BUBBLE going.

    Hence,I request all to please voice your views against this practice, and ask govt to abolish this 1.5 lacs deduction benefit - it only works in the interests of banks and builders, not the consumer or economy.
    Not agree with you. Do you think if government will abolish 1.5 lacs decuction builders will reduce price ? This will save tax of 30 to 45 thousands who want to buy house for own use. Those who want to stay in rented house can save 1.5 lacs (Upto 3 lakhs) in pther tax saving schemes. So government is doing right thing by allowing taxpayers to save money by investing in tax saving schemes or house as per their wish. As this benefit was their when old buyers like me bought house it should continue. Government can't change long term schems in one go.

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    • #3

      #3

      Re : Direct Tax Code - Please provide INPUTS

      It is not a OR. If the govt keeps this 1.5 lacs interest deduction, it will also keep the HRA. It is a deduction which will be applicable or NOT applicable to both renters or owners.

      For me and others, many people in India just want to buy a flat for SAVING TAX. This notion has to go. BUY WHEN NEEDED AND WHEN YOU HAVE THE MONEY --- THIS WILL REDUCE LEVERAGING...AND HENCE THE RE BUBBLE

      I am happy even if they dont provide the HRA tax deduction benefit, and provide the extra 1.5 lacs benefits into pensions/insurance/PPFs/ -- people need to build LT wealth.

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      • #4

        #4

        Re : Direct Tax Code - Please provide INPUTS

        tax benefit is only if you r buying for own use that is too with loan so I don't think people buy house to save tax. But yes it helps house buyer by reducing monthly tax deduction. As per new tax structure there is upper cap of 3 lakhs and 1.5 lakhs is part of that so there is no need to buy house for save tax. Again people with black money / cash money can not take this benefit so it is there only for genuan tax paying buyers.

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        • #5

          #5

          Re : Direct Tax Code - Please provide INPUTS

          Originally posted by mahesh pune View Post
          tax benefit is only if you r buying for own use that is too with loan so I don't think people buy house to save tax. But yes it helps house buyer by reducing monthly tax deduction. As per new tax structure there is upper cap of 3 lakhs and 1.5 lakhs is part of that so there is no need to buy house for save tax. Again people with black money / cash money can not take this benefit so it is there only for genuan tax paying buyers.
          I don't know whether direct tax code should be there or not but to be honest my main motive of taking house was Tax Savings and it worked, my tax amount reduced to good extent.
          So all in all if Tax Saving factor wouldn't be present, i couldn't have thought for taking house.

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          • #6

            #6

            Re : Direct Tax Code - Please provide INPUTS

            Originally posted by pnb_2k View Post
            I don't know whether direct tax code should be there or not but to be honest my main motive of taking house was Tax Savings and it worked, my tax amount reduced to good extent.
            So all in all if Tax Saving factor wouldn't be present, i couldn't have thought for taking house.
            Request other members to put their views on the motivational factors of taking house.

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            • #7

              #7

              Re : Direct Tax Code - Please provide INPUTS

              It doesnt mean that, it just means - earlier you had 3 years to SELL old property and BUY a new property without attracting income tax on the earlier property...

              Now, you will have just 1 year to do that...after one year of purchase , THE PROPERTY SALE WILL ATTRACT INCOME TAX.

              This is BAD NEWS for ALL property investors...

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              • #8

                #8

                Re : Direct Tax Code - Please provide INPUTS

                Yes, earlier it was within 3 years - you need to BUY another property, now its reduced to 1 year....so NOT TOO MUCH of switch time....

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