Tax deduction in residential sales in India
India announced that a cut in the goods and services tax charged on sales of residential properties under construction.
According to The Goods and Services Tax Council, the new rate will be 5 percent, down from the current 12 percent, on all housing projects which were not in the affordable housing category. Besides the council decided to lower tax rate on affordable housing projects to 1 percent from 8 percent.
In additon the council alterede the ddefinition of affordable housing and said any house built on an area of 60 square metres of less in the metro cities of India will now be categorised as affordable housing. For non metro cities the area would be 90 square metres and below. The property has to be Rs4.5 million or below to qualify as affordable.
Fulya Altunyay/ [email protected]