In another stimulus package ahead of Diwali to boost economic growth, Finance Minister Nirmala Sitharaman announced an income tax relief for home buyers under the Atmanirbhar 3.0 stimulus measures. Relaxations will be provided for houses up to Rs 2 crore.
“The difference between the circular rate and the value of the agreement in the real estate income tax will be increased from 10% to 20% from today until June 30, 2021, for the primary sale of residential units of up to 2 million rupees. The income tax relief provides an incentive for the middle class to buy homes, ”Sitharaman said at a press conference.
“We expect the liquidation of inventories through this step,” he added.
The relief is only intended for first-time buyers and will be available until June 30, 2021.
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It also announced an additional outlay of Rs 18 billion for the urban housing scheme to help complete real estate projects. “It would be provided above the 2020-21 budget estimates for Prime Minister Awas Yojana (Urban) through additional allocations and extrabudgetary resources,” Sitharaman said.
The finance minister added that the funds will exceed the 8 billion rupees that have already been provided this year.
Sitharaman said the move would help start working on 12 lakh houses, as well as completing 18 lakh houses. This would create 78 lakh of new jobs, as well as demand for steel and cement.
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