Indian government in Union Budget 2021 has extended additional tax benefit of Rs 1.5 lakh by one year to March 31, 2022. It is for the purpose of purchasing affordable houses.
A new tax exemption will be introduced by the government to promote supply of affordable rental housing for migrant workers. It will be introduced for notified affordable rental housing projects.
Mr. Aditya Kushwaha, CEO & Director, Axis Ecorp.
We welcome the first digital
budget presented by the Hon'ble Finance Minister. The budget is largely
focussed on healthcare and infrastructure, which will have a ripple effect on
the development in the other sectors including real estate. The finance
minister has also given special importance to human capital. Steps taken in
this direction in conjunction with growth in infrastructure will lead to an
increase in the disposable income of people which could bring a good scope for
investment in real estate.
In the Annual budget for 2021 too, we can see the Government’s focus on
affordable housing. The deduction on payment of interest for affordable housing
has been extended by a year. This move will improve customer buying behaviour.
At the same time, to boost the investment coming via the NRI route, the
taxation has been simplified which will incentivise NRIs to invest in our
country as they will get a tax rebate on the rental income. This move will also
give a boost to holiday homes and commercial real estate in the country.
Furthermore, there have been relaxations offered in real estate transactions, capital gains, business profits, and rental income which in turn will uplift the real estate sector.
Farshid Cooper, MD, Spenta Corporation
A major impetus to the infrastructure and introduction of DFI or Development Financial Institution worth INR 20000 cr is a fillip to not just to the respective sectors but also to the aligned segments such as housing. The pandemic had significantly impacted the construction of major infrastructure projects and stalled the housing construction for a considerable amount of time. The DFI will help fast-track the infra projects in major cities paving way for the growth of the housing sector as well. Additionally, an extension of tax exemption available for the purchase of affordable houses and affordable rental housing projects will boost the real estate sector in major cities and Tier II and III cities as well. -
Mr. Anurag Mathur, CEO, Savills India on the Union Budget 2021-2022 for your perusal.
Mr. Anurag Mathur,
CEO, Savills India
The budget has reaffirmed the government’s commitment to bring back the country
on a road of recovery through focused impetus on infrastructure, healthcare,
inclusive development, innovation, and robust governance. Real estate specific announcements although
few, were targeted towards affordable housing and REITs.
Tax holidays and exemptions in
affordable housing and debt financing for REITs are expected to strengthen the
confidence of all the stakeholders in the residential and office segments.
Central sponsorships of metro projects in key urban areas among other
infrastructure initiatives are likely to bolster the real estate potential of
specific micro-markets in these cities.
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