Union Budget 2021-22 presented by Finance Minister Nirmala Sitharaman on February 1, secures a great scope for progress in the real estate sector.
“Current government to abide on ‘Housing for All’ and affordable housing as priority areas,” said Finance Minister Nirmala Sitharaman while presenting the Union Budget 2021-22 budget.
Interested home buyers and real-estate developers have proceeded to increase the limit from 10 to 20 per cent for specific primary sales of residential units.
In the July 2019 Budget, the government had provided an added deduction of Interest of Rs 1.5 lakh, for a loan taken to purchase an affordable home.
The finance minister has extended the deduction eligibility by 1 more year to March 31st, 2022. This means that an additional deduction of 1.5 lakh will be available for loans taken up till 31st March 2022 for the purchase of affordable houses.
The finance minister has also decided to provide advance tax liberation on dividend income and rise only after the payment of dividends. In the case of Foreign Portfolio Investors, the deduction of tax on dividend income at a lower treaty rate is enabled.
In the case of Infrastructure; 1,016 km of metro and RRTS is under construction in 27 cities and 702 km of the conventional metro is operational. The 2 technologies, ‘MetroLite’ and ‘MetroNeo’ will be providing a metro rail system at much lower costs with a similar experience, safety, and convenience in tire 1& 2 cities.
The Centre will provide funding to:
|Nagpur Metro Rail Project Phase-II and Nashik Metro||Rs 5,976 crore and Rs 2,092 crore respectively|
|Bengaluru Metro Railway Project Phase 2A and 2B of 58.19 km||Rs 14,788 crore|
|Kochi Metro Railway Phase-II of 11.5 km||Rs. 1,957.05 crore|
|Chennai Metro Railway Phase-II of 118.9 km||Rs. 63,246 crore|
LED Lights: The custom duty on fixtures including LED Lamps is from 7.5% to 10% and from 5% to 15% on solar lanterns or solar lamps, including inputs and parts of LED lights.
The budget has shown a positive outcome for the real estate market. What do you think are the other factors that might be benefitting the realty sector?