With a view to boost the demand for residential real estate, the Finance Ministry on Thursday announced income tax relief for home buyers and developers under the ‘Atmanirbhar Bharat’ 3.0 package.
The Finance Minister Nirmala Sitharaman announced that first-time buyers of houses costing up to ₹ 2 crore will get income tax relief of up to 20 percent and this will be available till June 30, 2021.
. “This measure will reduce hardships faced by both home-buyers and developers and help in clearing the unsold inventory,” the Finance Minister said.
“For primary residential real estate sales, relief on the difference between circle rate and agreement value up to 20 percent vs 10 percent earlier. We expect clearance of inventories through this step,” Sitharaman stated.
Also, the bank guarantees for construction activity will be reduced to 3 percent of the overall project value which was 10 to 15 percent earlier.
The move will help middle-class families across the country and they will be able to buy when the housing sector is sitting on inventories, Sitharaman emphasized.
