In a major boost for the real estate sector in India, the central government provides income tax relief to the developers and home-buyers to increase the demand for residential real estate.
While the finance minister announcing the ‘Atmanirbhar Bharat’ 3.0 package, she quotes that providing relief on the sale of housing units will reduce hardships faced by both home-buyers and developers and help in clearing the unsold inventory.
To boost as well support the economic recovery process, a fresh set of measures, worth around Rs 1.2 lakh crore, to boost real estate demand, provide liquidity support to stressed sectors like real estate, etc. and encourage economic activity in housing and infrastructure areas. and also in job creations.
The Finance minister said that Atmanirbhar Bharat’ 3.0 package will help middle-class families across the country and said that they will be able to buy “when the housing sector is sitting on inventories”. She further informed that the central government will also have a focus to amend the income tax act soon. also, the government has decided to hike the differential from 10 percent to 20 percent under Section 43(CA) of the IT Act till June 30, 2021
With the government announcing this, home-buyers and builders, the bank guarantees for construction activity will be reduced to 3 percent of the overall project value which was 10-15% earlier. It is expected that this move will reduce the burden on builders and developers and ensure greater liquidity to firms.
Real estate and Industry experts believe that the additional expenditure of Rs 18,000 crore on PM Awas Yojana (PMAY – Urban) is another boosting step towards realizing his vision of housing for all by 2022. This will help 12 lakh houses to be grounded and 18 lakh houses to be completed. This will go a long way towards minimizing the housing deficit and at the same time is an excellent boost up for economic growth by creating more jobs and growth.
Written By – Mukund Kumar Pandey
About Agrawal Builders: It is a premium real estate developing firm in Bhopal with a wide range of residential properties and beautiful amenities like a modern clubhouse, gymnasium, swimming pools, parks, and garden, etc.