Union Budget 2021: Tax holiday extended for affordable housing projects for one more year
Budget 2021: Finance minister Nirmala Sitharaman during her budget speech announced extension of tax holiday on affordable housing projects for one more year.
The Union finance minister during her 'never seen before' budget has announced tax exemptions for affordable housing.
Finance minister Nirmala Sitharaman during her budget speech announced the extension of the tax holiday on affordable housing projects for one more year. Affordable housing projects can avail tax exemption benefit until March 31, 2021, she said.
Under the third pillar of the Aatmanirbhar Bharat mission that entails financial inclusion for all, the finance minister had announced tax exemption for one additional year with the aim to ensure affordable housing for all.
"This government sees ‘Housing for All’ and affordable housing as priority areas. In the July 2019 Budget, I provided an additional deduction of interest, amounting to ₹1.5 lakh, for loan taken to purchase an affordable house. I propose to extend the eligibility of this deduction by one more year, to March 31, 2022," the minister said.
Sitharaman also announced the extension of tax holiday for one more year for affordable rental housing projects to ensure affordable housing for migrant workers. Affordable rental housing projects are part of Pradhan Manti Gareeb Awas Yojana-Urban.
The affordable housing projects are mainly government focused real estate arena aimed to ensure housing for all. In Budget 2020, the affordable housing developers were provided with a tax holiday for a year. The tax holiday has been further extended this year too.
The minister had started the budget speech noting the rough year that India had gone through, the economy that was hit by the coronavirus pandemic and Aatmanirbhar Bharat scheme that launched mid-year to alleviate the economic crisis.