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Finance minister Sitharaman announces income tax relief for homebuyers
“Differential between circle rate and agreement value in real estate income tax is being increased from 10 per cent to 20 per cent from today till June 30, 2021, for primary sale of residential units up to Rs 2 crore. The income tax relief provides incentive to middle class to buy homes,” Sitharaman said at a press conference.
In yet another stimulus package ahead of Diwali to boost the economic growth, finance minister Nirmala Sitharaman announced an income tax relief for homebuyers under the Atmanirbhar 3.0 stimulus measures. The relaxations will be provided for houses up to Rs 2 crore.
“Differential between circle rate and agreement value in real estate income tax is being increased from 10 per cent to 20 per cent from today till June 30, 2021, for primary sale of residential units up to Rs 2 crore. The income tax relief provides incentive to middle class to buy homes,” Sitharaman said at a press conference.
“We expect clearance of inventories through this step,” she added.
The relief is only meant for first-time buyers and will be available till June 30, 2021.
She also announced Rs 18,000 crore additional outlay for the urban housing scheme to help complete real estate projects. “It would be provided over and above the Budget Estimates for 2020-21 for the Prime Minister Awas Yojana (Urban) through additional allocation and extra budgetary resources,” said Sitharaman.
THe finance minister added that the funds will be over and above Rs 8,000 crore already provided this year.
Sitharaman said that the move would help start work on 12 lakh houses as well as complete 18 lakh houses. This would create 78 lakh new jobs as well as demand for steel and cement.
