Budget 2020 recently made it all over the news. Many sectors gained a lot froam the budget, while some of the sectors had to remain disappointed. The real estate sectors expected a lot from the budget 2020; however, it had to remain satisfied with whatever little the budget had to offer.
Though directly, there is a very narrow influence on the rental flat in Hyderabad and the housing sector, there is a strong link between the tax slab and real estate.
Our honourable finance minister considered the woes of the middle-class populace and revised the tax slab. The revised tax slab is as mentioned below:
- If you are an individual with an annual income within the range of Rs. 0 to Rs. 2.5 lakhs, you will be exempted from any type of tax.
- If you are an individual with an annual income that falls in the range of Rs. 2.5 lakh to Rs. 5 lakhs, you will have to pay the tax of about 5% of your annual income.
- If you are an individual, making an annual income of about Rs. 5 lakh to Rs. 7.5 lakh, you will have to pay the tax of about 10% of your income.
- If you are an individual, earning an annual income of about Rs. 7.5 lakh to Rs. 10 lakh, you will be obliged to pay the income tax of about 15% from your annual income.
- If you are an individual with an annual income falling in the range of Rs. 10 lakh to Rs. 12.5 lakh, you will need to pay the income tax of about 20% of your income.
- If you are an individual with an annual income of about Rs. 12.5 lakh to Rs. 15 lakh, you will need to pay the income tax of about 25% of your income.
- If you are an individual with an annual income of about Rs. 15 lakh or more, you will have to pay the income tax of 30%.
Individuals that make an earning of less than Rs. 12.5 lakh annually will now be able to save more, as they have to pay less tax than the previous years. As a result, they may consider investing the saved money in real estate properties. Besides this, people with lower income may even consider upgrading their rental property.
Investment for the Development of Smart City to Indirectly Benefit the Rental Housing Sector in Hyderabad
The smart city development project was launched by the government of India in the year 2014. Since then, the government has taken ample efforts to boost the infrastructure in various cities. Hyderabad also holds a prominent position among the other smart cities. As a result, road construction and residential societies will witness a makeover and further progress in the city.
With aid from the government, investors and builders will take the leeway to construct new housing societies. This will, in turn, reduce the demand-supply gap in the real estate market, and bring the prices of the rental flat in Hyderabad on the lower side.
If you are looking for a good rental flat in Hyderabad, you can directly contact our executives, who will offer you a list of rental properties in Hyderabad to choose from.