Indian government in Union Budget 2021 has extendedadditional tax benefit of Rs 1.5 lakh by one year to March 31, 2022. It is forthe purpose of purchasing affordable houses.
A new tax exemption will be introduced by the governmentto promote supply of affordable rental housing for migrant workers. It will beintroduced for notified affordable rental housing projects.
Mr. Aditya Kushwaha, CEO & Director, AxisEcorp.
We welcome the first digitalbudget presented by the Hon'ble Finance Minister. The budget is largelyfocussed on healthcare and infrastructure, which will have a ripple effect onthe development in the other sectors including real estate. The financeminister has also given special importance to human capital. Steps taken inthis direction in conjunction with growth in infrastructure will lead to anincrease in the disposable income of people which could bring a good scope forinvestment in real estate.
In the Annual budget for 2021 too, we can see the Government’s focus onaffordable housing. The deduction on payment of interest for affordable housinghas 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, thetaxation has been simplified which will incentivise NRIs to invest in ourcountry as they will get a tax rebate on the rental income. This move will alsogive a boost to holiday homes and commercial real estate in the country.
Furthermore, there havebeen relaxations offered in real estate transactions, capital gains, businessprofits, and rental income which in turn will uplift the real estate sector.
Farshid Cooper,MD, Spenta Corporation
A major impetus to theinfrastructure and introduction of DFI or Development Financial Institutionworth INR 20000 cr is a fillip to not just to the respective sectors but alsoto the aligned segments such as housing. The pandemic had significantlyimpacted the construction of major infrastructure projects and stalled thehousing construction for a considerable amount of time. The DFI will helpfast-track the infra projects in major cities paving way for the growth of thehousing sector as well. Additionally, an extension of tax exemption availablefor the purchase of affordable houses and affordable rental housing projectswill boost the real estate sector in major cities and Tier II and III cities aswell. -
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 countryon a road of recovery through focused impetus on infrastructure, healthcare,inclusive development, innovation, and robust governance. Real estate specific announcements althoughfew, were targeted towards affordable housing and REITs.
Tax holidays and exemptions inaffordable housing and debt financing for REITs are expected to strengthen theconfidence of all the stakeholders in the residential and office segments.Central sponsorships of metro projects in key urban areas among otherinfrastructure initiatives are likely to bolster the real estate potential ofspecific micro-markets in these cities.