Union Budget 2020 for real estate market: Affordable Housing and infrastructure get the lion’s share
Union Budget 2020: How did it fare for India’s real estate market?
Finance Minister Nirmala Sitharaman recently presented the Union Budget 20-21, which she said was aimed to boost incomes and enhance purchasing power. While the education sector, IT and electronic manufacturing sector are among the areas the budget has greatly emphasised on, the real estate market, to a certain extent, has also received a considerable boost.
Tax reliefs for individuals and corporates alike
The income tax slab has been significantly reduced. This will ease the hardships in real estate transactions as well as benefit the middleclass tax payers. Additionally the tax rates for corporates have also been deduced. They have been presented an option to be taxed at 22 percent (earlier it was 30 percent) plus 10 percent surcharge and 4 percent cess with no exemption.
Infrastructure and Affordable housing segment
However, infrastructure and affordable housing were a principal focus of the budget. It proposed to establish 100 new airports for the UDAN scheme by 2024. Solar plants would also be set up on land owned by the Railways along the rail tracks.
- Provision of Rs 1.7 lakh crore for transport infrastructure in 2020-21.
- Accelerated development of highways including control highways, economic corridors, coastal and land port roads and strategic highways
- Completion of Delhi-Mumbai expressway by 2023
- Start of construction of the Chennai-Bengaluru Expressway
Furthermore, to boost the “Housing for All” initiative, the government granted tax holiday on the profits earned by builders on affordable housing projects by March 31 2020. Sitharaman also announced an additional deduction of up to 1.5 lakhs rupees for interest paid on loans for one year in order to boost the supply of affordable homes. Interest deduction of up to INR 3.5 lakhs for affordable homes priced lower than Rs 45 lakhs for loans availed till March 31 2020 has been proposed as well.